2.6% increase in Honduras’ external public debt by May 2023

Honduras’ public external debt has risen to US$9.380 billion between January and May, reflecting a 2.6% increase compared to the previous year, according to data released by the Central Bank of Honduras (BCH).

The general government holds the majority share of the debt at 91.3%, followed by the monetary authority at 6.5%, non-financial public companies at 2%, and Financial Public Institutions at 0.2%.

Around 71.5% of the public debt was obtained from multilateral organizations, 16.7% from commercial creditors, and 11.8% from bilateral creditors.

The debt is primarily denominated in US dollars (83%), followed by special drawing rights (12.7%), euros (2.3%), and other currencies (2%).

The majority of the debt (84.4%) was acquired through loans, while the remaining 15.6% was issued as sovereign bonds in the international financial market.

Notably, the sovereign bonds issued in 2013, 2017, and 2020 amounting to $500 million, US$700 million, and US$600 million, respectively, will be repaid in a single principal payment upon maturity in 2027 and 2030.

In the first five months of 2023, Honduras received US$139.3 million in disbursements for project financing, which is US$88.7 million less than the previous year.

Additionally, the public sector secured new external borrowing of US$170.9 million from the Inter-American Development Bank (IDB) to support project and program execution.

During the same period, the service of the public debt amounted to US$403.1 million, with US$121.1 million dedicated to interest and commissions payments, and US$282 million allocated to the repayment of capital.