Caribbean & Central America - May 2025

HONDURAS | New staff-level agreement reached with IMF. On 11 April Honduran authorities reached a staff-level agreement with the International Monetary Fund (IMF) on policies and reforms to complete the third review of Honduras’ Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements with the Fund. The agreement, pending approval by the IMF’s executive board in June, would unlock a disbursement of approximately US$155m. IMF mission leader, Ricardo Llaudes, stated that, despite global economic uncertainty, the Honduran economy has demonstrated resilience. Llaudes highlighted that growth remained solid at 3.6% in 2024, while inflation, which stood at approximately 4.5% in March in annual terms, stayed within the target range set by the central bank (BCH) of 3%-5%. Llaudes also highlighted a significant increase in international reserves, attributed to successful external sovereign bond issuance, inflows from multilateral development banks, and monetary and exchange rate policy adjustment – factors which he said had contributed to the moderation of credit growth and a rebalancing of the Honduran economy.

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