Press Release No. 10/472

Press Release No. 10/472
December 3, 2010

Henry Ma, resident representative of the International Monetary Fund (IMF) in Honduras, issued the following statement today in Tegucigalpa:

“An IMF staff team met with the economic cabinet, other key policymakers, and private-sector representatives during November 29-December 3. The team assessed the near-term economic outlook and updated macroeconomic projections, focusing on the implementation of the government’s fiscal program. The IMF team wishes to thank the authorities for their excellent cooperation and productive discussions.

“Macroeconomic developments are broadly in line with projections underlying the program approved by the IMF’s Executive Board on October 1. Performance in the fiscal area through September was also broadly in line with the program.

“The team noted that successful implementation of the authorities’ economic program crucially depends on sustained efforts to strengthen revenue collection, contain current expenditures, and bolster the efficiency and financial performance of key public enterprises. The team supported recent measures to control monetary liquidity, and steps to fortify the banking sector and reform public pension funds. The team also supported continued close monitoring of developments in the financial sector and recommended that the authorities refrain from adopting measures that could be distortionary and adversely affect confidence and the economic recovery.

“The Government’s economic program for 2010-11 is being supported by a blend of resources in the amount of SDR 129.5 million (about US$202 million) from two IMF credit lines, the Stand-By Arrangement (SBA) and the Standby Credit Facility (SCF).

“The next visit of an IMF staff team is expected for February, to assess performance through end-December and conduct the first review under the program.”