Economy & Business - October 2025

HONDURAS | New staff-level agreement with IMF. On 26 September the International Monetary Fund (IMF) announced that it had reached a staff-level agreement with the leftist Partido Libertad y Refundación (Libre) government led by Honduras’ President Xiomara Castro on policies and reforms to complete the fourth review of the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements. According to the IMF statement, the agreement, which awaits approval by the IMF’s executive board, would result in the disbursement of around US$120m. According to the statement, “strong economic policies, a surge in remittances, and favorable export prices have allowed Honduras to continue to navigate successfully this period of exceptional global uncertainty and in the context of an election year” – a reference to general elections due on 30 November. It cites economic activity indicators which point to “robust growth” of 3.9% in the first half of 2025 while headline inflation, at 4.2% in August, remains within the tolerance range of the central bank (BCH)’s inflation target. It also highlights that international reserves have risen to US$9.7bn, which it says “appropriately” boosts Honduras’ “external buffers amid a challenging global environment”. More generally the IMF states that “authorities have redoubled efforts in the implementation of their structural agenda, achieving important milestones and regaining traction in key areas”. It highlights advances “made in support of structural fiscal reforms, including measures to strengthen transparency and governance to support preparations for the 2026 Financial Action Task Force (FATF) evaluation” while the authorities along with state electricity company Empresa Nacional de Energía Eléctrica (ENEE) “continue to lay the ground for the critical long-term international energy tender planned for early 2026”.

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