Tegucigalpa, Honduras – April 11, 2025 – The International Monetary Fund (IMF) and Honduran authorities have reached a staff-level agreement on the third review of the Extended Credit Facility (ECF) and Extended Fund Facility (EFF), paving the way for a potential $155 million disbursement pending IMF Executive Board approval in June.

Following a mission led by Ricardo Llaudes from March 31 to April 11, the IMF praised Honduras for its economic resilience despite global uncertainties. The country achieved 3.6% growth in 2024, with inflation at 4.5% in March, within the Central Bank of Honduras’ target range. Strong coffee exports, remittances, and a successful sovereign bond issuance have boosted international reserves, while monetary and exchange rate adjustments have moderated credit growth and supported economic stability.

The agreement underscores Honduras’ commitment to prudent fiscal policies, particularly during an election year, with a 2025 budget targeting a 1.5% GDP deficit to fund investments in roads, health, education, and energy. The authorities are also advancing reforms, including modernizing public procurement, strengthening social spending through programs like Red Solidaria, and enhancing the energy sector to reduce arrears and improve efficiency at the state-owned electricity utility, ENEE.

To maintain stability, the Central Bank will closely monitor inflation and reserves, adjusting policies as needed, while benefiting from a crawling band exchange rate regime. Anti-corruption measures, including digital signatures, an investment portal, and preparations for a 2026 Financial Action Task Force evaluation, are also priorities.

“The Honduran economy has shown remarkable strength,” Llaudes said, thanking the authorities and stakeholders for constructive discussions. The IMF report will now be prepared for the Board’s consideration, marking another step in Honduras’ efforts to bolster growth and resilience.