Browse Honduras Daily Stories

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.

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.

Honduras's public external debt reached $11.31 billion as of August 2026, up $571 million from December 2025, driven by new borrowing of $1.52 billion against debt repayments of $946 million, according to the Central Bank.

Honduras's public external debt reached 27.6% of GDP as of August 2026, a level the central bank says indicates low risk of unsustainable public debt.

As of August 2026, loans account for 74.2% of Honduras's external public financing, sovereign bonds represent 21.2%, and other debt instruments make up the remaining 4.6%.

The central government accounts for 86% of Honduras's public-sector external debt, with the central bank responsible for 13.2% and other public entities holding the remaining 0.8%.

Economist Ismael Zepeda criticized the government's new $177 million CAF loan for the energy sector, arguing it contradicts recent reforms meant to attract private investment and warning that the debt burden will fall on consumers rather than private utilities.

Honduras's public external debt stood at $10.77 billion in June 2026, equivalent to 26.3% of GDP and down 0.8 percentage points from December 2025, with the general government accounting for 87.5% of the total.

Honduras's private-sector council will analyze the draft national budget to assess how funds will be spent, whether increases go toward productive investment or routine expenses, and how the government will finance a $700 million bond payment due in January.

Honduras's public debt reached 451.9 billion lempiras (about $18.1 billion) as of August 31, 2026, a 49.3 billion lempira increase from a year earlier, driven by external borrowing from the Inter-American Development Bank and other creditors to finance the central government budget.

Congress approved two loans worth $225 million from the World Bank's International Development Association and the Inter-American Development Bank to support public finances and the national budget, with low interest rates and extended repayment periods.

State institutions have accumulated over 20 billion lempiras (roughly $800 million) in unpaid electricity bills to ENEE, with much of the debt dating back more than 15 years; the utility is auditing its accounts receivable and also grappling with 34% energy losses due partly to theft.

An economist at the governance think tank ASJ warns that Honduras is using new loans to service about 40% of its existing public debt, a practice that perpetuates debt growth and undermines long-term fiscal sustainability.

The private-sector business council says Honduras should borrow the $400 million CAF financing to strengthen the housing bank and spur construction, but opposes debt used only to cover government operating costs.

Honduras sold a 10-year sovereign bond for $815.67 million at a 6.4% interest rate, securing funds for debt management and the national budget while locking in interest rates more than 2 percentage points lower than a 2024 issuance.

ASJ economist Obed García warned that Honduras's public debt has grown to roughly equal the entire national budget, leaving little fiscal room for salaries, public investment, and essential services if the government were to address it.

Experts debated Honduras's urgent need for electricity-sector reform, warning that failure to reach consensus by July will worsen blackouts, increase public debt, and deter foreign investment, as lawmakers disagree over whether new utilities should remain state-owned or allow private investment.

An economist at civic watchdog group ASJ warns that Honduras's rising public debt could approach $25 billion within years without policy changes, and calls for greater investment in infrastructure, ports, education, and energy to drive sustainable growth.

Dante Mossi, former president of the Central American Bank for Economic Integration, says the government lacks a public strategy to manage ENEE's $1 billion debt to power generators, a $700 million sovereign bond due in January 2027, and roughly $3 billion in stalled infrastructure projects including roads, dams, and hospitals.

Obed García, an economist at the Association for Justice, says Honduras should use public borrowing to fund infrastructure and productive projects rather than other spending, citing existing road and economic plans and the need to create jobs for 300,000 unemployed people.

As of May 2026, Honduras's external public debt stood at $10.76 billion, with 70.1% owed to multilateral organizations, 20.9% to commercial creditors, and 9.0% to bilateral lenders.

Economist Henry Rodríguez says Honduras's budget execution is tracking at only 32% through June due to delays in budget approval and cabinet formation, with 26.2% committed to salaries and 27% to debt service, leaving little room for public investment.

Honduras's public external debt reached $10.76 billion as of March 2026, up $24.5 million from December 2025.

Honduras's public debt increased by $1.8 billion in the first three months of 2026 compared with the same period a year earlier.

Honduras signed a $100 million Inter-American Development Bank loan to strengthen fiscal management, revenue collection efficiency, and budget transparency, with support from the IMF, World Bank, and CAF.

Deputy Finance Minister Liliam Rivera said the National Treasury faces critical strain from automatic debt payments linked to lawsuits from the prior administration, combined with obligations to multilateral lenders and a floating debt exceeding 24 billion lempiras (about $960 million).

The draft 2027 national budget totals 450.4 billion lempiras (about $18 billion), with debt service alone consuming roughly 74.6 billion lempiras (16%), while ten institutions account for about 75% of all spending.

Finance Minister Emilio Hércules said Honduras placed $815 million in bonds this year—$615 million to manage debt and $200 million for the 2026 budget—while a new sovereign bond carries a 6.40% interest rate, down from 8.65% on the previous issue.

An economist at Honduras's social auditor's office warns that public debt has climbed to nearly $14 billion—above pre-2006 levels—as the government takes new loans to pay existing obligations, creating a cycle of mounting debt.

FOSDEH economist Mario Palma says Honduras's public debt has risen to $18.454 billion this year, up from previous levels.