LatinNews Daily - 12 May 2026

*The International Monetary Fund (IMF) has announced that it has reached a staff-level agreement with the Honduran government led by President Nasry Asfura on policies and reforms to complete the fourth and fifth reviews of the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements. An IMF statement notes that the agreement, which awaits approval by the IMF board, expected in late June, would make available about US$245m. The announcement is a boost for the conservative Partido Nacional (PN) government, which has sought to revive the programme with the IMF. The programme has been stalled since last year after the previous leftist Partido Libertad y Refundación (Libre) government led by Xiomara Castro (2022-2026) failed to fully meet its target for the programme’s fourth review. The IMF statement outlines that the new administration, which has pledged to shrink the state and cut public spending, is “committed to implementing strong policies consistent with the objectives of the Fund-supported program”.  It adds that “the Honduran economy remains resilient”, with the economic activity indicator pointing to 3.7% growth year-on-year in February, and cites “a healthy accumulation of international reserves alongside prudent fiscal policies”, with net international reserves reaching about US$11.6bn at end-April. The Fund says that the Honduran economy is “well placed to navigate a more challenging external environment, notably the global energy price shock stemming from the war in the Middle East that has already impacted inflation directly and significantly”. The IMF highlights that headline inflation in Honduras reached 5.6% in April, up from 3.5% in February.

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