LatinNews Daily - 30 June 2026

*The International Monetary Fund (IMF) has announced the completion of the fourth and fifth reviews under the Extended Fund Facility and Extended Credit Facility arrangements for Honduras. The completion of the reviews enables the authorities to release US$242m, bringing the total disbursements under the programmes so far to about US$725m. Honduras’ 36-month arrangements totalling about US$847m were approved in September 2023 under the previous leftist Partido Libertad y Refundación (Libre) government led by former president Xiomara Castro (2022-2026). In a statement, the IMF says the Honduran economy has “remained resilient”, expanding 3.8% in 2025, supported by “record-high coffee prices and surging remittances”. It forecasts economic growth will slow to 3.3% in 2026 due to higher global oil prices and headline inflation will close 2026 at 5.7%, up from 4.0% in 2025, also due to higher energy prices. The statement adds that “the continued implementation of prudent fiscal policies, an appropriate monetary and exchange policy mix, and the recent acceleration of structural reform implementation demonstrate the authorities’ strong commitment to the Fund-supported program”. It highlights a “strong” fiscal performance, citing a fiscal deficit of 0.7% of GDP in 2025, which it says outperforms the programme target of 1.5% of GDP, with a 1.0% of GDP deficit targeted in 2026. The latest IMF endorsements follow the approval in April by the right-of-centre Partido Nacional (PN) government led by President Nasry Asfura, which took office in January, of a reduced State budget for 2026 compared with the proposal put forward by the Libre government, and a public spending law approved in February which handed the executive more power to cut government spending, among other things.

End of preview - This article contains approximately 282 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial