IMF Staff Country Reports

Honduras : First Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility and Request for Waiver of Performance Criteria, and Financing Assurances Review

Author/Editor:

International Monetary Fund

Publication Date:

February 2, 2006

Electronic Access:

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Summary:

Honduras’s First Review Under the Poverty Reduction and Growth Facility and Request for Waiver of Performance Criteria are discussed. The authorities are taking measures to contain inflation. The inflation target has been raised to accommodate the first-round impact of the oil price increase, and measures to limit foreign borrowing and credit growth are being taken to restrain domestic liquidity in the face of high foreign exchange inflows. A cautious monetary policy is particularly important given the role of expected inflation in wage settlements.

Series:

Country Report No. 06/34

Subject:

Announcements Bank reforms Exchange systems Financial sector Fiscal policy HIPC Initiative Honduras Monetary policy Performance criteria waivers Poverty Reduction and Growth Facility