The International Monetary Fund (IMF) announced this Monday that its technical team and Honduran authorities have reached a technical agreement to complete the fourth and fifth reviews of the economic program supported by the organization. This is a crucial step that will enable a new disbursement of approximately USD 245 million for Honduras.
The final approval will depend on the IMF's Executive Board, which will evaluate the proposal at the end of June 2026. This agreement represents a significant endorsement of the economic strategy promoted by the Honduran government, in an international environment characterized by geopolitical uncertainty.
The IMF mission, led by Emilio Fernández Corugedo, was in Tegucigalpa from April 27th to May 11th, reviewing the country's economic performance and compliance with the objectives defined in the IMF's Extended Fund Facility (EFF) and the Extended Credit Facility (ECF).
According to the organization's preliminary assessment, the Honduran economy has shown resilience, despite a complex international environment and the political uncertainty recorded during the previous year's electoral process.
Among the notable achievements is the strengthening of international reserves, which reached approximately USD 11.6 billion at the end of April, thanks to the sustained flow of family remittances and the good performance of exports.
The IMF detailed that economic activity remains…
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An agenda of structural reforms was analyzed to modernize regulatory frameworks, increase financial inclusion, and promote inclusive economic growth in Honduras. (Presidential House of Honduras) The International Monetary Fund (IMF) announced this Monday that its technical team and Honduran authorities have reached a technical agreement to complete the fourth and fifth reviews of the economic program supported by the organization, a decisive step that will allow a new disbursement of approximately USD 245 million for Honduras. The final approval will depend on the IMF Executive Board, which will evaluate the proposal at the end of June 2026. This understanding represents a significant endorsement of the economic strategy promoted by the Honduran government, in an international environment characterized by geopolitical uncertainty. The IMF mission, led by Emilio Fernández Corugedo, was in Tegucigalpa from April 27 to May 11, reviewing the country's economic performance and compliance with the objectives defined in the IMF's Extended Fund Facility (EFF) and the Extended Credit Facility (ECF). According to the organization's preliminary assessment, the Honduran economy has shown resilience, despite a complex international environment and the political uncertainty recorded during the previous year's electoral process. Among the notable achievements is the strengthening of international reserves, which reached approximately USD 11.6 billion at the end of April, thanks to the sustained flow of family remittances and the good performance of exports. The IMF detailed that economic activity continues to grow robustly, with an advance of 3.7% in February, despite the global climate marked by geopolitical tensions and the rising cost of oil due to conflicts in the Middle East. However, the IMF warned about the impact of inflation resulting from the increase in energy prices and imported goods. General inflation in Honduras rose from 3.5% in February to 5.6% in April, mainly due to the increase in the cost of imported tradable products. The technical agreement implies for Honduras a commitment to maintain prudent macroeconomic policies, establishing a target for the non-financial public sector deficit of 1% of Gross Domestic Product (GDP) in 2026. The IMF emphasized that fiscal discipline will be essential to safeguard economic stability and free up resources for priority spending, especially in social and infrastructure areas. ARCHIVE PHOTO: View of the logo of the International Monetary Fund (IMF) at its headquarters in Washington, D.C., United States, on November 24, 2024. REUTERS/Benoit Tessier/Archive photo. The program includes structural reforms designed to strengthen the monetary and exchange rate framework, increase institutional transparency, combat corruption, and ensure the financial sustainability of the energy sector. The organization also recognized the steps taken by the new Honduran authorities to strengthen legal certainty and attract private investment, considering it a driver of growth and employment. Among the relevant measures is Honduras' return to the International Centre for Settlement of Investment Disputes (ICSID), as well as reforms related to the foreign exchange auction system and the institutional modernization of the Central Bank of Honduras (BCH). One of the central aspects of the technical understanding refers to the financial situation of the National Electricity Company (ENEE), identified as one of the major structural challenges for the country's economy. The energy sector, and especially the ENEE, represents a key challenge; the IMF supports reforms to reduce losses and ensure sustainability. (Archive photo) The IMF noted that the increase in international fuel prices has intensified the financial pressures on the state-owned electricity company, and therefore considers it essential to move forward with reforms to improve efficiency, reduce losses, and strengthen transparency in the energy sector. In addition, the organization valued recent measures such as the reorganization of distribution units, tariff adjustments, and the targeting of energy subsidies, while emphasizing the importance of continuing the reform process, with the aim of ensuring long-term sustainability.