IMF Completes the Fourth Review Under Stand-By Arrangement for Honduras

• The Executive Board of the International Monetary Fund (IMF) completed its fourth review of Honduras’ performance under its economic program supported by a Stand-By Arrangement (SBA) and an arrangement under the Standby Credit Facility (SCF), approved an augmentation of access by SDR 149.9Mn (US$215.8Mn), and extended the duration of the SBA and SCF by two months until January 14, 2022. 
• The two-year arrangements under the SBA and SCF were approved on July 15, 2019. Including the augmentations approved on September 13, 2021 and on June 1, 2020, the two-year arrangement provides access to about SDR 537.1Mn (about US$773Mn). 
• Honduras’ worse than expected economic contraction in 2020 will only be partly reversed in 2021.The ongoing health emergency and significant reconstruction needs from tropical storms Eta and Iota warrant a temporarily looser fiscal stance. However, the authorities remain steadfastly committed to macroeconomic stability, fiscal responsibility, and structural reforms. 
• That being said, the completion of the review allows for immediate disbursements of SDR 87.4Mn (about US$125.8Mn) to help Honduras meet its balance of payments and fiscal financing needs, which have been exacerbated by the ongoing pandemic and the tropical storms.

(Source: IMF)