Browse Honduras Daily Stories

Three weeks after Honduras's new Energy Justice Law took effect, a monitoring report finds only one of 42 required tasks completed, with losses at the state utility ENEE rising to 34.4% and a critical energy auction delayed to early 2027.

Honduras has roughly an 80% chance of passing key performance indicators to compete for a new US Millennium Challenge grant worth $800 million to $1 billion, which the government aims to use for infrastructure and poverty reduction after more than 15 years without such funding.

A think tank analyzing Honduras's new energy law found that freezing electricity rates through March 2027 would cost about L6 billion (roughly $240 million), with the richest 10% of customers capturing 65% of the savings while low-income households receive only 9%.

Honduras's state electricity utility ENEE has begun forgiving accumulated electric bills, penalties, and interest for low-income residential customers with monthly consumption of 250 kilowatt-hours or less, applying the Energy Justice Law.

Honduras is reactivating an interbank foreign-exchange market that allows commercial banks to trade dollars directly rather than channeling all sales through the central bank, though economists warn it could pressure the exchange rate and international reserves if a few banks dominate or if December import demand spikes.

Economist Rubén Darío Sorto warns that Honduras's diplomatic switch to mainland China has disrupted retail trade, calling the resulting shift in the trade balance with China 'brutal' for the Honduran economy.

Honduran salaried employees can request refunds of excess income tax (ISR) withheld from their paychecks through the tax authority (SAR) by submitting required documents including pay stubs, proof of withholding, and a formal application.

Honduras's Economic Cabinet opened the sixth and final review of its 2023–2026 IMF agreement with a technical mission through November 2, evaluating compliance with economic targets and structural reforms; approval would unlock $120 million and pave the way for a new 2027–2030 accord.

An ASJ watchdog report warns that energy losses at Honduras's state power company have risen to 34.4%, a major 1,500-megawatt energy tender already delayed to 2027 risks supply shortages, and the three successor companies can absorb only a fifth of a 143.8-billion-lempira debt.

The Central Bank of Honduras auctioned $85.4 million in its October 19 currency sale, setting a weighted average exchange rate of L26.8936 per dollar for October 20.

End-of-2025 data shows Honduras had 15.6 million deposit accounts, with commercial banks and credit unions holding 94.2% of the total, reflecting expanded access to formal financial services.

The Central Bank of Honduras announced it will begin a phased return to the interbank foreign-exchange market late in 2026, with further details to follow.

Honduras's population reached 11.18 million in 2026, up from 2.1 million in 1960, but annual growth has slowed to 1.63% as fertility rates drop and urbanization accelerates, with 58.8% now living in cities.

The Honduran private-sector council backs the IMF's 3.3% growth forecast for Honduras this year, citing headwinds including weak US and European growth, climate impacts, energy scarcity, fuel costs, and transport and health-sector labor conflict.

Honduras's total public debt has exceeded $18 billion, with external debt alone over $11.5 billion, and Fosdeh warns that debt service payments of $3 billion planned for 2027 will consume resources needed for health, education, and other sectors.

Soaring gasoline and diesel prices are forcing Honduran households to reduce spending on food quality, clothing, and recreation, with one Tegucigalpa mother reporting an extra 600 lempiras (about $24) weekly on fuel alone.

Poultry producers guarantee continued supply of chicken and eggs but warn that rising feed and input costs — corn up 35%, soybean oil up 40%, fertilizer up 120% — will drive further price increases, while the government pledges to monitor for excessive hikes.

Economist Sergio Zepeda says Honduras maintains stable macroeconomic conditions backed by foreign-exchange generation and international reserves ahead of the sixth and final International Monetary Fund review, but cautioned that gains must translate into concrete improvements in employment, poverty reduction, and living standards.

Honduras's Energy Ministry announced new fuel prices effective October 19, with premium gasoline falling despite rising international costs, while regular gasoline and vehicular LPG increase, as the government continues subsidizing certain fuels to limit inflation.

An International Monetary Fund delegation arrives in Honduras on October 20 for a two-week review of the country's 2023 economic program; if approved, it will unlock negotiations for a new three-year agreement and access to additional funding.

Honduras's money supply rose 10.0% in the year through October 1, down sharply from 18.2% a year earlier, reflecting the central bank's efforts to manage liquidity and ease inflation pressure.

The Central Bank auctioned $96.6 million in its October 16 foreign-exchange offering, setting the weighted average exchange rate at L26.8862 per dollar for October 17–19.

Honduras's national microenterprise agency is making 86 million lempiras (about $3.4 million) available to agricultural producers through four partner institutions at interest rates of 10–12% annually, with financial training and technical assistance included.

Economist Ismael Zepeda warned that high inflation is directly weakening Hondurans' purchasing power and slowing domestic consumption, forcing families to choose between paying utilities, buying food, and purchasing fuel.

Honduras's public-employee pension institute (INJUPEMP) is offering unsecured loans up to L 800,000 (about $32,000) to active civil servants and retirees at 17% annual interest, with repayment terms of up to 72 months for pensioners under 80.

Honduras's net international reserves grew by $1.21 billion since late January to reach $11.51 billion as of October 15, providing 6.6 months of import coverage.

The central bank reports that Honduras's banking system maintains adequate liquidity and actively manages short-term funding needs, with increased interbank trading and central bank window activity during 2026.

Drought across Honduras has driven onion prices up five lempiras per pound and potatoes up two lempiras per pound at major markets, squeezing household budgets as consumers report their food money no longer stretches far enough.

The World Bank's vice president for Latin America, Susana Cordeiro Guerra, met with Central Bank President Roberto Lagos in Bangkok and confirmed plans to visit Honduras in mid-November to advance economic reforms and competitiveness measures.

The Central Bank of Honduras auctioned $104 million in foreign currency on October 15, setting the official weighted average exchange rate at L26.8910 per dollar for October 16.