Honduras: First and Second Reviews Under the Extended Fund Facility and the Extended Credit Facility Arrangements, and Requests for Waivers of Nonobservance of Performance Criteria and Rephasing of Purchases-Press Release; Staff Report; and Statement

This page discusses Honduras’ First and Second Reviews under the Extended Fund Facility and the Extended Credit Facility Arrangements, and Requests for Waivers of Nonobservance of Performance Criteria and Rephasing of Purchases. The Honduran economy remains resilient, despite external and climate shocks. The authorities have adopted measures to reduce electricity losses and domestic arrears of the state-owned electricity company. Strengthened budget execution, energy sector reforms, proactive implementation of monetary and exchange rate policies, and intensified efforts to tackle long-standing structural bottlenecks remain key to safeguard macroeconomic stability and to promote inclusive and sustained growth. The increasing frequency of climate change-related events calls for accelerating the implementation of climate adaptation policies. In order to support these efforts, the authorities have requested an arrangement under the Resilience and Sustainability Facility. Close engagement with IMF staff on this area will continue.