The World Bank’s Board of Executive Directors approved a USD 145 million First Fiscal and Climate Transparency and Sustainability Development Policy Financing for Honduras to strengthen tax transparency and support economic and climate sustainability. The operation is positioned as the first in a programmatic series of two and is intended to enhance domestic resource mobilization and productive capacity. On fiscal transparency and sustainable finance, the package supports initiatives to improve domestic resource mobilization, prevent money laundering, and widen access to international financial resources, including reforms to adopt international tax reporting standards and detect unreported income. It also supports the approval of a regulatory framework for issuing sustainable bonds, aimed at enabling the Honduran Government to access international capital markets to finance priority green and social investments aligned with national sustainable development goals. On climate sustainability, measures include support for deforestation-free exports, improved assessment of disaster risks within the financial system to strengthen stability, and the establishment of a regulatory framework to promote energy efficiency, including assistance for small farmers to comply with the European Union’s Deforestation-free Regulation.
World Bank 2025-02-17
World Bank Board approves USD 145 million financing for Honduras to boost fiscal transparency and climate sustainability
The World Bank approved a USD 145 million financing package for Honduras to enhance tax transparency and support economic and climate sustainability. This initiative aims to improve domestic resource mobilization, prevent money laundering, and facilitate access to international financial resources, including sustainable bond issuance. It also includes measures for deforestation-free exports, disaster risk assessment, and energy efficiency.