Honduran President Juan Orlando Hernández said that Banking, capital markets crucial for Honduras infrastructure financing.

The country needs to develop its local capital markets to help that goal, he told LatinFinance’s Central America Finance and Investment Forum in Tegucigalpa.

“We don’t just need traditional, short-term financing. We need long-term financing, which allows us to address one of our biggest challenges: infrastructure.

“That’s why it’s fundamental that we develop our capital markets, which will allow more complicated financial instruments to be developed, that support strategic projects which have a regional impact.”

Similarly, a robust banking sector was critical to pushing forward with the Central American state’s development initiatives, said Hernández, who this week marked a year in office.

To that end, he welcomed the arrival of international banks such as Guatemala’s Banrural, which started operations in Honduras late last year, he said: “They will bring great competition for our friends in the Honduran banks.”

Hernández also reinforced his commitment to the country’s agreement with the IMF, which was signed in December. The deal garnered confidence for Honduras, he said, and the country would follow the plan agreed “to the letter”.