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

U.S. Aircraft Carrier Joins Anti-Drug Operations in Latin America

The world’s largest aircraft carrier joined on Tuesday the U.S. operation against drug trafficking from Latin America, which Venezuela insists is aimed at toppling...

Panama’s Massive Cocaine Seizure in Pacific Waters

Panamanian authorities seized nearly 12 tons of cocaine from a vessel in the Pacific Ocean, marking one of the country's largest drug busts in...

Costa Rica Aims for First Place vs Haiti in World Cup Qualifying Showdown

Costa Rica's quest for a place at the 2026 World Cup heats up on Thursday, when they face Haiti. La Sele currently sits in...

Costa Rica’s Envision Festival Sets 2026 Dates with Smaller Size and Eco Focus

Organizers of the Envision Festival have revealed plans for the 2026 event, set for February 23 to March 2 in Uvita. The gathering will...

Costa Rica’s Route 32 Shutdown Drags On Amid Weather Delays

Drivers on Route 32 face more uncertainty today as the Ministry of Public Works and Transportation (MOPT) holds off on announcing when the key...

How Organized Crime Surged in Costa Rica

A new report paints a stark picture of organized crime tightening its hold on Costa Rica. The 2025 Global Organized Crime Index shows our...
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