Press Release No. 07/80

Press Release: Statement by IMF Staff Visit to Honduras

April 26, 2007

Mr. Mario Garza, the International Monetary Fund (IMF) resident representative in Tegucigalpa, issued the following statement on April 26, 2007:

"At the request of the authorities, an IMF mission visited Honduras on April 24, 2007 to review recent economic developments and discuss broad outlines of a medium-term policy strategy being developed by the authorities. The mission agreed with the authorities that such a strategy should prioritize sustainable strong growth and poverty alleviation, and seek a broad national consensus to ensure the success of the emerging policy agenda. Against a background of solid macroeconomic indicators in 2006 and early 2007, improved debt profile, and favorable external conditions, the mission sensed that the time was right to strengthen the policy framework and further improve investment and job creation prospects. The mission also agreed with the authorities on the need to strengthen fiscal policy to ensure adequate room in the budget for priority social and infrastructure projects, while keeping the public debt sustainable. The mission expressed its readiness to assist the authorities in finalizing its medium-term policy strategy, and wishes to thank the authorities for a continued policy dialogue with Honduras."