Honduras Seeks US$120M in Final IMF Review

HONDURAS · ECONOMY

Honduras and an International Monetary Fund team are due to start the last review of a US$847 million programme next week. Honduran officials expect about US$120 million if it passes.

Honduras is due to open the final IMF review of its US$847 million programme next week, and officials expect about US$120 million. The International Monetary Fund (IMF), the Washington lender, will keep a mission in Honduras until Monday, 2 November, El Heraldo reported.

Roberto Lagos, president of the Central Bank of Honduras (BCH), confirmed the schedule to El Heraldo. He told Proceso Digital that talks on a new accord should conclude by the end of March 2027.

What the Final IMF Review Will Test

The IMF approved two lending arrangements for Honduras on 21 September 2023, worth about US$847 million over 36 months. They are an Extended Fund Facility and an Extended Credit Facility, the Fund’s medium-term loans.

On 29 June 2026 the IMF’s Executive Board completed the fourth and fifth reviews, releasing about US$242 million at once. That lifted total payouts to about US$725 million and leaves SDR 89.2 million (the IMF’s unit of account), about US$121 million.

Emilio Fernández Corugedo, who led the Fund’s April and May visit, will head the mission, El Heraldo reported. Finance Minister Emilio Hernández Hércules said Nigel Chalk, who directs the IMF’s Western Hemisphere Department, will accompany it.

Lagos told Proceso Digital that Chalk will help close the review and meet President Nasry Asfura. Honduran officials expect a final payment of about US$120 million for the balance of payments, El Heraldo reported.

Why the Power Utility Is the Hard Part

The main weak point is ENEE, the state power utility, which carries unpaid domestic bills known as arrears. In June the Board granted a waiver after Honduras missed its December 2025 target on ENEE’s domestic arrears.

The staff report set an end-June target of L9.8 billion (about US$364 million) for those arrears. It proposed L7.4 billion (about US$275 million) for end-September and recorded earlier misses in December 2025 and March 2026.

Congress passed the Energy Justice Law with 78 votes on 31 August, and Asfura signed it by 30 September. The law separates ENEE’s generation, transmission and distribution activities, forgives some household debts and freezes tariffs for six months.

At a news conference reported on 30 September, Hernández Hércules said the law tells multilateral lenders that Honduras guarantees good governance. He added that his economic cabinet is working with the American Embassy and local investors on investment opportunities.

The Economy the Fund Is Checking

The IMF said in June that Honduras grew 3.8% in 2025 and expects 3.3% this year. The 2025 fiscal deficit was 0.7% of GDP, inside the 1.5% programme target, and the 2026 target is 1%.

Inflation is the newer worry, with the BCH reporting 6.28% year on year for September, up from 4.55% a year earlier. That is above the 5.7% the IMF projected for the end of 2026.

Hondurans abroad sent home US$12.2 billion in 2025, La Tribuna reported from BCH figures, and the United States is the largest source. Net international reserves reached about US$11.6 billion at the end of April, the IMF said, helped by those transfers.

What It Means for US Readers

The decision is made in the United States, because the IMF’s Executive Board meets in Washington and approves each payout. Honduras also leans on dollar inflows, with the United States the largest source of the remittances that hold up its reserves.

For investors, the review tests whether Honduras cuts ENEE’s arrears and pushes its reform forward. The finance minister named the American Embassy as a partner in the search for investment.

For families with relatives in Honduras, electricity tariffs are frozen for six months, while fuel and food still push prices up. The BCH’s reference buying rate was L26.89 per US$1 on Thursday, and this article uses about L26.9.

What Is Not Known

No source reviewed gives the exact size of the final payment or the date of a Board vote. Honduran officials say about US$120 million, while the IMF’s totals leave SDR 89.2 million, about US$121 million.

El Heraldo alone gives the exact dates, and no IMF, central bank or Finance Ministry statement confirming them has been found. Proceso Digital says the review starts next week, and the Finance Ministry earlier said late October to early November.

El Heraldo gives the term as 1 September 2023 to 31 August 2026, but IMF papers show approval on 21 September 2023. The staff report puts expiry at 20 September 2026 and asks for an extension to 31 December 2026.

The IMF documents reviewed do not state whether the Board approved that extension. The staff report said the extension would give time to finish the sixth and final reviews.

No source reviewed confirms whether ENEE met its end-June arrears target. The IMF has not said whether the mission will seek new measures on ENEE.

What Comes Next

The mission opens on Tuesday, 20 October, and is due to leave on Monday, 2 November, El Heraldo reported. In the previous round, staff agreement on 11 May was followed by Board approval on 29 June.

Lagos says a new accord should be agreed by the end of the first quarter of 2027, Proceso Digital reported. World Bank vice president Susana Cordeiro Guerra is due in Honduras in mid-November, Lagos added.

For background on the country’s politics and economy, see the guide Honduras Explained 2026. The June payout and its conditions are covered in the earlier report on the US$242 million release.

Frequently Asked Questions

When does the Honduras IMF review start?

It is due to start next week, and El Heraldo reports the mission will stay until Monday, 2 November. BCH president Roberto Lagos confirmed the dates, El Heraldo reported.

How much money is at stake in the review?

Honduran officials expect about US$120 million, and the IMF’s totals leave about US$121 million of the US$847 million programme. The money supports the balance of payments.

Why does the state power company ENEE matter to the IMF?

Missed targets on ENEE’s arrears forced a waiver in June, so the review will test them again. The company carries unpaid domestic bills known as arrears.

What is the Energy Justice Law?

Congress passed it with 78 votes on 31 August 2026. It separates ENEE’s generation, transmission and distribution activities, keeps subsidies for small users and freezes tariffs for six months.

Does the IMF review matter to Americans?

The IMF is based in Washington, and its Executive Board there approves each payout. Hondurans abroad sent home US$12.2 billion in 2025, with the United States the largest source.

What happens after the review ends?

The IMF Board must approve it, as it did on 29 June for the previous two reviews. Honduras then plans talks on a new accord, aiming to finish by the end of March 2027.

Sources: El Heraldo, 15 October 2026; Proceso Digital, 15 October 2026; IMF, Honduras fourth and fifth reviews, staff report and press release of 29 June 2026; IMF press release, 29 June 2026; IMF press release 26/148, 11 May 2026; Finance Ministry (SEFIN), 30 September 2026; Finance Ministry (SEFIN), mission announcement, September 2026; El Heraldo, 31 August 2026; El Heraldo, BCH inflation, October 2026; La Tribuna, BCH remittances, 15 September 2026; El Heraldo, BCH remittances by origin, 11 December 2025; El Heraldo, BCH exchange rate, 15 October 2026 (all accessed 15 October 2026).