Press Release No. 14/420

Press Release: IMF Mission Concludes Visit to Honduras

September 12, 2014

An International Monetary Fund (IMF) mission, led by Mr. Lisandro Ábrego, visited Honduras during September 2-12 to discuss a three-year Fund-supported program. The mission met with Minister Coordinator of the Government Jorge Hernández Alcerro, Central Bank Governor and Head of the Economic Cabinet Marlon Tábora, Minister of Finance Wilfredo Cerrato, other senior government officials and representatives of the private sector. Mr. Ábrego issued the following statement in Tegucigalpa today at the conclusion of the visit:

“We began discussions on a three-year program that could be supported by a financial arrangement with the IMF. These discussions have been productive and good progress has been made toward reaching agreement on the macroeconomic policies and structural reforms. The main objective of the program is to preserve macroeconomic stability in Honduras while improving conditions for sustainable economic growth and supporting efforts to reduce poverty in a fiscally affordable manner. The program would facilitate policy implementation, bolster investor confidence, and catalyze resources from multilateral institutions and donors.

“The mission and the authorities agreed that to bolster the public finances it is essential to reduce the deficits of the state-owned electricity company and the central government.

There was also broad agreement on the policy measures that would need to accompany these efforts, many of which are already being implemented, especially to support the ongoing process of reducing the deficit of the central government. In addition, we concurred that reductions in overall expenditure should be accompanied by changes in its composition to create room for social spending to help reduce poverty while protecting investment to support economic growth.

“These negotiations often take time and the next step is for our discussions with the Honduran government to continue in Washington D.C. in the next few weeks, with the goal of reaching agreement on a Fund-supported program within the previously agreed schedule.

“Finally, the mission would like to thank the authorities and private sector representatives for a cordial and productive dialogue, as well as for their excellent cooperation and hospitality.”