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

White House Calls Nobel Prize to Venezuelan Machado ‘Politics Over Peace’

The Norwegian Nobel Committee handed the 2025 Peace Prize to Venezuelan opposition leader María Corina Machado on Friday, sparking sharp words from the White...

Guatemala Joins Costa Rica and Ecuador in Building Anti-Gang Prisons

The Guatemalan government has put forward a new bill aimed at hitting gangs harder, with steeper sentences and a dedicated high-security prison, as the...

Cost of living in Costa Rica from a U.S. Expat

Paradise doesn’t come cheap. Cars, gas, appliances, phones, TVs often cost more in Costa Rica. But not everything. Here’s a simple, like-for-like look at...

Guatemala Accepts First Honduran Deportees from US

Guatemala has started accepting deportees from other countries as part of its deal with the United States, with the first group of Hondurans arriving...

Costa Rica’s Nayara Springs Named Among World’s Best Hotels by MICHELIN

Nayara Springs, a secluded adults-only resort near Arenal Volcano National Park, has claimed the highest spot in the MICHELIN Guide's new hotel rankings. The...

Costa Rica Faces a Must-Win for a Place in 2026 World Cup

Costa Rica's national soccer team faces a defining stretch in their bid to reach the 2026 World Cup. With just two points from their...
Avatar
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica