IMF Staff Country Reports

This paper presents Honduras’s Third Reviews under the Extended Fund Facility and the Extended Credit Facility Arrangements, and Request for Modification of Performance Criteria (PC). Economic resilience continues, and the recalibration of monetary and exchange rate policies initiated in 2024 is bearing fruit, with the economy rebalancing, inflation contained, international reserves strengthening, and foreign exchange market conditions improving. Program performance for the third review has been strong, with macroeconomic outcomes generally more favorable than programmed. All end-December 2024 PC were met on the back of the authorities’ decisive policies. Focus lied on measures to advance structural reforms while maintaining a prudent and agile policy mix to support economic stability in the context of heightened risks. The IMF Staff supports the completion of the third review and the authorities’ request for modification of performance criteria. Strong recent program performance and the authorities’ continued commitment to the program offer assurances of their ability to achieve program objectives. Performance criteria for reserves and net domestic assets are proposed to be modified considering stronger performance.