(Reuters) – The International Monetary Fund said on Friday it has reached a staff-level agreement with Honduras for a 36-month arrangement for about $830 million to support the country’s economic reform policies.
In a statement, the IMF said the economic program focuses on helping address urgent social spending and investment needs, while anchoring macroeconomic stability.
The agreement follows an IMF team visit to Honduras between June 5 and 16 and virtual discussions in recent weeks, it added.
“The Honduran economy has remained remarkably resilient to several shocks, both domestic and external, including the pandemic, weather events (tropical storms and droughts), the impact of the war in Ukraine, and the global economic slowdown,” the statement showed.
However, Honduras continues to face long-standing social and structural challenges, it said, and addressing these challenges will require “steadfast implementation (and) structural reforms that promote economic diversification and social inclusion.”
The loan will fall under the IMF’s Extended Fund Facility (EFF) and Extended Credit Facility (ECF), and is yet to be approved by the executive board.
(Reporting by Carolina Pulice; Editing by Isabel Woodford)
