Honduras’ Access to $5 Billion in Loans by Joining CAF in Doubt

*** Honduras would access 5 billion dollars in loans by joining the CAF.

The ex-minister of the Ministry of Finance (SEFIN), Wilfredo Cerrato, pointed out that the adhesion of Honduras to the Development Bank of Latin America (CAF) is unnecessary and inconvenient, since first the country would have to contribute and then it could access credits.

“When we first arrived at Finance at that time, we had a serious problem of lack of resources, we had limitations to request loans from CABEI, the IDB and the World Bank, in addition, the national banks did not trust much in lending to the State,” Cerrato recalled.

“I personally went to look for the CAF option, unfortunately I was discouraged when I realized what it cost to be a CAF member, first you have to contribute to be a member and to lend as a cooperative and I was disappointed because we couldn’t give ourselves the luxury of looking for money to contribute and then apply for a loan,” he said.

The also former president of the Central Bank (BCH) considered that now Honduras does not have these problems, “the current Government due to the credibility in the economic management that we left has open doors at CABEI, IDB, World Bank and in the sovereign markets”.

“It is not correct to take money from the taxes of people and companies to go to pay a bank, be a partner and then they lend you when you have the alternative that they lend you now; That would be feasible if, for example, CABEI says, Honduras is a great executor and there are no more loans, ”she opined.

“At this point, the Budget is not being executed and you have credit lines open for me, it is irresponsible, Honduras’s adhesion to CAF is totally unnecessary,” he pointed out.

“Loans that CAF can give are given by the IDB, the World Bank and CABEI, and they also lend at lower rates,” he said.

Honduras would access 5 billion dollars in loans by joining the CAF, Finance Minister Rixi Moncada revealed. Even so, the country’s incorporation into the financial body is in doubt, since the act has not yet been ratified in the National Congress. OB/Hondudiary