New Honduran
Government Seeks IMF Accord To Unlock Aid
TEGUCIGALPA -
The new Honduran government led by President
Porfirio Lobo was seeking an agreement with
the International Monetary Fund (IMF) in a
bid to get loans and unlock aid from other
credit organizations.
If an agreement is achieved with the IMF,
Honduras will receive resources from the
World Bank and from the Inter-American
Development Bank (IDB), which cut off aid to
Honduras since former President Manuel
Zelaya was ousted in a June 2009 coup, local
press reported.
The World Bank and the IDB had respectively
pledged 90 and 97 million U.S. dollars in
aid for Honduras in 2009. By yearend,
however, the two organizations had only
given Honduras 47.5 million dollars and 32.8
million dollars respectively.
International financial assistance is
imperative after the June coup led to
diplomatic isolation.
"Never before had (a president) inherited
such a difficult financial situation,
worsened by the world economic crisis and
(domestic) political crisis," new Finance
Minister William Chong Wong said Friday.
He said Lobo took over the nation with only
50 million U.S. dollars in government
coffers.
The new government also found it urgent now
to reform the country's 6.3-billion-dollar
budget, by cutting subsidies.
The ministry "has to review the new budget,"
Chong said.
The subsidy cut would mostly affect the
country's education, the purchase of lunch
for poor children, the payment of students'
school registrations and transportation.
To make the situation worse, February is a
month with less tax collection.
"We do not know what can be done, we have to
be technically able to see what can be done
and see the expenses, because it is not
enough to see only the incomes," said Chong.
The new government is also expected to
reduce the number of public officers.
Lobo was elected president in November amid
controversies, as the elections were held
under interim leader Roberto Micheletti.
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