Honduras: Fourth and Fifth Reviews Under the Extended Fund Facility and the Extended Credit Facility Arrangements, and Requests for a Waiver of Nonobservance of Performance Criterion and Extension of the Arrangements-Press Release; Staff Report; and Statement by the Executive Director for Honduras

This paper presents Honduras’ Fourth and Fifth Reviews under the Extended Fund Facility and the Extended Credit Facility Arrangements, and Requests for a Waiver of Nonobservance of Performance Criterion and Extension of the Arrangements. The Honduran economy has been resilient, despite elevated external uncertainty. The continued implementation of prudent fiscal policies, an appropriate monetary and exchange policy mix, and the recent acceleration of structural reform implementation demonstrate the authorities’ strong commitment to the IMF-supported program. The authorities remain committed to fiscal discipline, including through their efforts to prioritize current expenditures, mobilize revenue, and improve the targeting of energy subsidies. Efforts to reorganize and enhance the execution of social spending remain critical to protect vulnerable households and strengthen the social safety net. Furthermore, the implementation of the governance and anti-corruption agenda will be critical to improve investor confidence and support a favorable environment for job creation. Measures to enhance climate resilience are also important. A steadfast commitment to strengthen governance and combat corruption will be essential to foster private investment and inclusive growth.