Honduras

Program objective. An SBA and an SCF arrangements with total access of SDR 224.8 million (90 percent of quota) were approved on July 15, 2019. The Fundsupported program aims at maintaining macroeconomic stability and supporting growth through reforms to foster revenue mobilization, secure sustainability in the electricity sector, and improve governance and the business climate. The authorities plan to continue treating the SBA and SCF arrangements as precautionary. Economic and political context. Growth has slowed down more than expected due to a challenging external environment and a series of shocks to economic activity— notably, a severe drought. Some social tensions over political reforms and sectoral demands arose over the summer, but recent agreements on electoral management bodies have lessened them. It remains critical to secure the implementation of economic reforms, notably on revenue mobilization and the electricity sector.