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Bankrupt Honduras May See Help

February 4th, 2010 · No Comments

William Chong, upon taking up his new post as Honduras’ Finance Minister, has said that the new government is inheriting a bankrupt country, with only “about $50 million in government coffers”.

Chong said the country is bankrupt following months of isolation and cut offs of international aid prompted by the political crisis. He added that President Lobo’s administration will have to approach international lending agencies like the World Bank and International Monetary Fund for loans.

That may not seem as difficult as previously thought, as Craig Kelly, US Deputy Assistant Secretary of State, said that Honduras has made significant headway in returning to democratic constitutional rule, and that it deserved a chance to normalize international relations.

Mr. Kelly confirmed that the US was working to re-establish about $37 million in suspended aid now that President Porfirio “Pepe” Lobo has taken office.

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Tags: Financial News · Honduran Business & Economics · Politics in Honduras