Browse Honduras Daily Stories

Honduras's Financial Relief Law for agricultural producers took effect, allowing farmers, rice growers, salt producers, and shrimp farmers to refinance debts at a maximum interest rate of 2% annually over up to 15 years through Banadesa and Senprende.

Tulio Mariano Gonzales, the former vice president of BANADESA (Honduras's state development bank), alleged the institution is experiencing irregularities and called for an investigation to ensure financial transparency.

The National Agricultural Development Bank's board has ordered an investigation into credit approvals to determine whether irregularities occurred in the approval process and to establish responsibility.

A payroll review shows at least seven officials with family or close ties to BANADESA president Héctor Vidal Cerrato Zelaya were hired recently in key roles, earning a combined 462,316 lempiras (about $18,500) monthly, prompting nepotism allegations amid farmer complaints about financing access.

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.

Congress unanimously passed the Financial Relief Law for Agricultural Producers, which allows Banadesa and Senprende to restructure and refinance overdue farm loans at a maximum 2% interest rate over 10 years, with the government subsidizing 80% of crop-insurance premiums using 100 million lempiras.