The International Monetary Fund (IMF) and Honduras reached an agreement at a technical level on the fourth review of the Economic Program under the Credit Facility Agreement (Stand-By), by which it will be proposed to increase the level of access of the country to the Fund resources up to 769 million dollars, according to the agency in a statement.

“We are pleased to announce that the IMF team has reached an agreement at the technical staff level with the Honduran authorities on the conclusion of the fourth review of the economic reform program supported by the SBA / CFA facilities,” said the head of a IMF mission in the Central American country, Joyce Wong.

In this way, the technical staff will propose to increase the level of access under the Stand-By facilities by 215 million dollars, bringing the total access to around 769 million dollars.

The increase is part of the balance of payments needs caused by tropical storms and the persistence of the pandemic.

“The prolonged pandemic and tropical storms Eta and Iota have hit Honduras hard,” said Wong, adding that while the Honduran economy started recovering in the second half of 2020, November’s tropical storms caused flooding and landslides that destroyed infrastructure and homes, damaged crops and paralyzed manufacturing production.

As a result, the Gross Domestic Product (GDP) contracted 9 % in 2020 and the country’s economy is expected to recover moderately in 2021, supported by the reconstruction of domestic spending and strong growth in the United States.

K. Tovar

Source: Xinhua

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