## IMF and Honduras Reach Staff-Level Agreement on the First Review of the Economic Program under the Stand-by/Credit Facility Arrangement

_IMF News, November 8, 2019_

## Source details

**Canonical URL:** [IMF and Honduras Reach Staff-Level Agreement on the First Review of the Economic Program under the Stand-by/Credit Facility Arrangement](https://www.imf.org/en/news/articles/2019/11/08/pr19405-imf-and-honduras-reach-staff-level-agree-1st-rev-economic-program-under-sba-cfa)

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## Bibliographic details
- Published: November 8, 2019

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### Mission and agreement
- Press Release No. 19/405; date: November 8, 2019.
- An IMF team led by Mr. Esteban Vesperoni visited Honduras from October 28 to November 8 to conduct discussions on the First Review of Honduras’s IMF-supported program under the Stand-By Arrangement (SBA) and the Credit Facility Arrangement (CFA).
- The mission reached a staff-level agreement on the first review of the economic program supported by a two-year Stand-by and Credit Facility arrangement.
- The mission will not result in a Board discussion.
- Mission contact: PRESS OFFICER: Maria Candia Romano. Phone: +1 202 623-7100. Email: MEDIA@IMF.org. @IMFSpokesperson.

### Macroeconomic assessment and outlook
- Honduras has made important progress implementing its economic program aimed at fostering inclusive growth through:
  - prudent macroeconomic policies;
  - structural and governance reforms.
- Recent dynamics:
  - Honduras experienced a moderation in economic growth during the last quarters.
  - Growth is expected to recover next year, in line with a better global environment.
- Fiscal framework:
  - Authorities continue to pursue prudent macroeconomic policies anchored by the Fiscal Responsibility Law.
  - Authorities are working on expenditures reallocations to protect investment and social spending.
  - Authorities remain committed to maintaining revenue mobilization efforts to preserve gains achieved over the past years.
- Expected fiscal outcome:
  - Strengthening the financial position in ENEE has the potential to create the needed fiscal space to protect infrastructure investment and social spending.

### Structural and governance reforms
- Authorities are making progress on an ambitious reform agenda with potential to raise the economy’s growth potential.
- Electricity sector reform — notable advances in the initial phase:
  - Strengthening of the regulatory agency.
  - Creation of an independent system operator.
  - Efforts by the new management of the public electricity company (ENEE) and the Secretary of Finance to improve governance and transparency in ENEE.
  - Establishment of an electricity theft task force.
  - These measures aim to reinforce the institutional framework for an open, competitive and transparent market in the electricity sector and a sustainable financial position in ENEE.
  - Continued steadfast implementation of the reform plans in the sector remains essential.
- Broader governance and business climate roadmap includes:
  - Drafting the new central bank charter.
  - Improving the budget process and the quality of public spending.
  - Simplifying the regulatory framework.
  - Developing reforms to foster transparency and advance the fight against corruption.

### Stakeholder engagement
- The mission held discussions with:
  - President of the Republic Juan Orlando Hernández;
  - President of Congress Mauricio Oliva;
  - Magistrates of the Court of Accounts;
  - Members of the economic cabinet;
  - Other senior officials and representatives of civil society, the private sector and the international community.
- The mission expressed appreciation for the authorities and counterparts for excellent discussions and hospitality.

*International Monetary Fund — Press Release No. 19/405, November 8, 2019.*

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## References

- [Honduras and the IMF](http://www.imf.org/external/country/HND/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2019/11/08/pr19405-imf-and-honduras-reach-staff-level-agree-1st-rev-economic-program-under-sba-cfa_