Debt Restructuring

Congress approved a reform allowing Choluteca's municipal government to borrow up to 600 million lempiras (about $24 million) from national or international banks to restructure debt and fund infrastructure projects including road paving, sewage systems, and equipment purchases.

Honduras's banking regulator approved a temporary debt-restructuring program for agricultural producers in six departments covering 75 municipalities, allowing them to reschedule loans, extend payment periods, and access working capital.

Congress authorized Tegucigalpa's city government to issue $500 million in municipal bonds to restructure inherited debt, freeing about 60 million lempiras per month for water infrastructure and drought relief in the capital.

Edgar Aguilar of the Association for a More Just Society (ASJ) says proposed reforms to rescue the state power company ENEE lack fundamental components, while the ASJ has separately presented its own proposals to restructure ENEE's debt and reduce its financial burden.

Agricultural sector representatives will meet with BANADESA to discuss credit restructuring under a new congressional decree, though farmers say the bank's L1.2 billion fund (about $48 million) is insufficient—they estimate over L2 billion needed to stabilize the sector.