No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveHonduras One Step Closer to Debt Forgiveness

Honduras One Step Closer to Debt Forgiveness

TEGUCIGALPA (EFE) – HonduranPresident Ricardo Maduro last weekexpressed his satisfaction with a recentevaluation by the International MonetaryFund (IMF) of his country’s progresstoward eligibility for debt forgivenessunder the Highly Indebted Poor CountriesInitiative, known as HIPC.The President said “Honduras’ advancesin economics and its political consistency inmaintaining macroeconomic stability on themedium term” pleased himThe IMF’s evaluation puts Hondurason the brink of culminating with the conditionsnecessary for $1.2 billion in debt forgivenessunder the HIPC program over thenext 12 years.The final step is the approval of the WorldBank, which is scheduled for this week.PRESIDENT Maduro recognized theefforts of former President Carlos Flores(1998-2002) and Honduran CardenalOscar Rodríguez, both of whom have ledHonduras’ debt-forgiveness campaign.Flores got Honduras accredited for theHIPC program, while Rodríguez, considereda shortlist candidate for the next Pope(see separate story in TT), has been lobbyingfor international debt forgiveness ofHonduras since 1996.Honduras was declared eligible for theHIPC program in 1999, and entered into astrict IMF economic structural-adjustmentprogram aimed at maintaining macroeconomicstability.President Maduro, who took office inJanuary of 2002, continued the economicpolicies laid out by the international lendinginstitutions, which has represented astiff sacrifice of social spending inHonduras over the last years.MADURO explained that the pardoningof $1.2 billion in debt would be animportant achievement in the country’sPoverty-Reduction Strategy, which isaimed at paying down the foreign debt.Honduras, a country of nearly 7 million,70% of whom live in poverty, has atotal foreign debt of more than $5 billion.Nicaragua is the only other CentralAmerican country to benefit from HIPCdebt relief. Under the program, the IMF andWorld Bank granted Nicaragua $4.5 billionin debt forgiveness – approximately 73% ofthe country’s total external debt – in 2003.

Trending Now

Costa Rica Reports First Chikungunya Case in Nine Years

Health authorities in Costa Rica reported the first chikungunya case in nine years. The patient, a 24-year-old man from Esparza in Puntarenas province, tested...

Poás Volcano National Park Remains Shut as Bridge Repairs Drag On

Travelers planning a visit to Poás Volcano National Park face ongoing disruptions after authorities extended the closure of the site's main access route. The...

Costa Rica’s DGAC Stands Firm on Night Flight Ban Amid Patient Safety Concerns

Costa Rica's Directorate General of Civil Aviation (DGAC) continues to enforce a ban on nighttime operations at most aerodromes, pointing to reports of activities...

Central Bank Phases Out Old Coins in Costa Rica

The Central Bank of Costa Rica has set a deadline for three older coin denominations to leave everyday use. Starting July 1, 2026, the...

Costa Rica Braces for Weekend Chill with Valle Central Temperature Drops

Costa Rica residents and tourists alike face colder mornings through the weekend, with temperatures in the Valle Central dropping by up to 4 degrees...

Alex de Minaur Into Australian Open Quarterfinals with Dominant Win

Local favorite Alex de Minaur advanced to the quarterfinals of the Australian Open, after a commanding performance against Kazakhstan's Alexander Bublik. The sixth-seeded Australian...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica