Press Release No. 11/204

Statement at the Conclusion of the IMF Mission to Honduras

May 31, 2011

A staff team from the International Monetary Fund (IMF) visited Honduras during May 16-26 to conduct discussions on the second review of performance under the program approved by the Executive Board of the IMF on October 1, 2010. The government’s economic program is being supported by a blend of resources in the amount of SDR 129.5 million (about US$202 million) from two IMF credit lines, the Stand-By Arrangement (SBA) and the Standby Credit Facility (SCF). The mission wishes to thank the authorities for the productive discussions.

The mission noted that all quantitative performance criteria for March 2011 were observed with ample margins, and implementation of structural reforms has continued. The mission and the authorities broadly concurred on the macroeconomic framework for 2011. Real Gross Domestic Product (GDP) growth is projected at 3.5 percent and inflation at approximately 8 percent. The authorities reaffirmed that the deficit of the combined public sector will be kept at 3.1 percent of GDP in 2011. The central bank is committed to tighten the monetary policy stance if inflationary pressures accelerate and to protect the external position. The mission looks forward to further discussions with the authorities on the economic and financial policies for the rest of 2011 and for 2012.