IMF Staff Concludes Visit to Honduras

IMF News, June 25, 2022

Source details

Press Release No. 22/229
Date: June 24, 2022
Mission dates: June 20-24, 2022
Location: Tegucigalpa, Honduras
IMF team led by Joyce Wong and supported by resident representative Christian Henn
Mission purpose: to deepen discussions on the authorities’ vision and policy priorities to form the basis for a deeper engagement with the Fund
Note: End-of-Mission press releases convey preliminary findings after a visit. The views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.

Despite a strong rebound in economic activity, employment remains below pre-pandemic levels.
High and rising inflation, driven by commodity prices and subsequent economic shocks amid strong remittances, is exposing the most vulnerable Hondurans.
Short-term government focus: cushioning the economy from the impact of commodity price increases and protecting the vulnerable from food insecurity amid rising food prices.

Reduce poverty and protect the most vulnerable.
Foster inclusive growth.
Tackle corruption and strengthen governance and transparency, including by improving public financial management.
Passed legislation to eliminate trust funds.
In the process of reviewing tax exemptions to make the tax system more equitable.
- Objective: create fiscal space to boost much-needed investment and support social spending.
Commitment to honor the country’s debts and to maintain debt sustainability.
- Improving debt management with international assistance.
- Aim to gradually improve the debt service profile.
Importance of implementing energy reforms to improve the functioning of the national electricity company (ENEE) and the electricity sector.

The IMF team thanked the authorities for their hospitality and candid discussions.
Communications contact: PRESS OFFICER: Jose Luis de Haro; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; Twitter: @IMFSpokesperson