HONDURAS · ECONOMY
Honduras has reached a staff-level agreement, a deal between experts of the International Monetary Fund (IMF) and the government, that could release about US$120 million. A Honduran economist and a civil-society group urge a careful reading of the deal, in views we report but could not independently confirm.
The agreement completes the sixth and final review, the last scheduled progress check, of a loan program approved in September 2023 and made up of two linked IMF loan facilities, after an IMF mission to Tegucigalpa, the capital, from 20 October to 2 November 2026. It still needs approval from the IMF’s Executive Board, its governing body, which is expected to consider it in late December.
Key Facts
- What IMF staff and Honduras agreed the sixth and final review of the 2023 loan program.
- How much About US$120 million, released only if the IMF Executive Board approves in late December.
- The caution Economist Fredy Tejada says fixing the state power company will be slow and may mean privatisation.
- The ask Fosdeh, the Social Forum on External Debt and Development of Honduras, wants verifiable power-sector pledges.
- Not yet Nothing is paid until the board votes in late December.
What Was Agreed
An IMF team led by Emilio Fernández Corugedo, the IMF’s mission chief for Honduras, spent about two weeks in Tegucigalpa. The agreement was announced on 1 November 2026.
The IMF said net international reserves, the central bank’s usable foreign-currency holdings, reached about US$11.5 billion in October, and that the economy grew 3.7% in the first half of 2026. It also asked Honduras to reduce losses and arrears at the state power company, the Empresa Nacional de Energía Eléctrica (ENEE), and to address governance weaknesses.
What the Analysts Say
Fredy Tejada, a Honduran economist, called the control of the fiscal deficit a positive sign. He noted that the loan’s interest rate is low and its term long, but said all borrowing is harmful to the Honduran people because it must be repaid.
Tejada said that fixing the state power company, ENEE, would be slow and painful and could end in privatisation. He cited many signs of corruption and little transparency, and said budget execution has not even reached 50%.
Those are his views, reported by a Honduran radio station. We have not independently measured his claims about corruption or budget execution.
Fosdeh, the Social Forum on External Debt and Development of Honduras, a civil-society group, argues that the IMF relationship should reach beyond fiscal targets to cover migration, remittances and climate change. It says the agreement is a chance to add verifiable commitments on the electricity sector.
What This Means for You
For US readers, Honduras has close migration and trade ties to the United States, so its economic health matters beyond the region. The analysts quoted here warn that an IMF agreement does not by itself lift living standards.
Our earlier report covers President Nasry Asfura’s trip to seek a new program and the request for the final review. See also the earlier disbursement and the power company and the Honduras news hub.
What Is Not Known
It is not known how the government will spend the money, or whether the board will approve it as expected. Only a board vote in late December would make the US$120 million available.
We could not open the IMF’s own page, so we read its statement as republished. The views of Tejada and Fosdeh come from one Honduran radio report, so please treat them as reported, not confirmed.
Frequently Asked Questions
How much will Honduras receive from the IMF?
About US$120 million, if the IMF Executive Board approves the sixth and final review. The board is expected to consider it in late December 2026.
What is a staff-level agreement?
It is a deal between IMF experts and a government. It becomes final only when the IMF Executive Board approves it.
What worries the analysts?
Economist Fredy Tejada points to the state power company, debt that must be repaid and corruption signs. The group Fosdeh wants verifiable commitments on electricity.
What is Fosdeh?
Fosdeh is the Social Forum on External Debt and Development of Honduras. It is a civil-society group that follows debt and development policy.
Sources: International Monetary Fund, statement on Honduras, November 2026, and press release of 21 September 2023 on the program; Honduran government and presidency statements, November 2026; Honduran radio report of 2 November 2026 quoting economist Fredy Tejada and the civil-society group Fosdeh.
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