The International Monetary Fund said its staff and the Honduran authorities had reached a staff-level agreement on the policies and reforms needed to complete the fourth and fifth reviews of Honduras’ Extended Credit Facility and Extended Fund Facility arrangements. The end-of-mission statement is a preliminary staff finding rather than an Executive Board decision, but Board consideration is expected in late June 2026 and, if approved, would make about USD 245 million available. IMF staff described program performance as broadly favorable, with particularly strong results against quantitative targets. Net international reserves reached about USD 11.6 billion at end-April, the economic activity indicator pointed to 3.7 percent growth in February, and headline inflation rose to 5.6 percent in April from 3.5 percent in February as higher global energy prices fed through imported tradable goods. The agreed policy mix keeps a 2026 non-financial public sector deficit target of 1 percent of GDP and prioritises better-targeted social spending, continued strengthening of the monetary and exchange rate frameworks, further foreign exchange auction reforms, and energy sector measures to reduce National Electric Power Company arrears and losses. The statement also highlights governance and business climate reforms, including liquidation of trust funds identified under the program, temporary ring-fenced treatment of the new health trust fund, and the need to pass and implement Financial Action Task Force-related legislation and operationalise the beneficial ownership registry ahead of Honduras’ 2026 evaluation. IMF staff will now prepare a report for management approval before it is submitted to the Executive Board.
International Monetary Fund 2026-05-11
International Monetary Fund reaches staff-level agreement with Honduras on fourth and fifth ECF and EFF reviews that could release about USD 245 million
The IMF reached a staff-level agreement with Honduras on policies and reforms to complete the fourth and fifth reviews of its Extended Credit Facility and Extended Fund Facility, enabling potential access to about USD 245 million pending Executive Board approval. IMF staff assessed performance as broadly favorable and agreed to maintain a 2026 non-financial public sector deficit target of 1 percent of GDP, while prioritizing targeted social spending, strengthening the monetary and exchange rate framework, reforming foreign exchange auctions, and advancing energy sector measures. The statement also highlights governance and business climate reforms, including liquidating identified trust funds, temporarily ring-fencing the new health trust fund, adopting Financial Action Task Force-related legislation, and operationalizing the beneficial ownership registry before Honduras’ 2026 evaluation.