[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110964-en":3,"doc-seo-110964-105":29,"detail-sidebar-cat-0-en-105":90},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":4,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},110964,687197207919,"Theodora","https://ap-avatar.wpscdn.com/avatar/a000253d6f5f7c60be?x-image-process=image/resize,m_fixed,w_180,h_180&k=1779446848396160552",8,"Research & Report","Honduras - Joint World Bank-IMF Debt Sustainability Analysis - September 2021","The joint Debt Sustainability Analysis assesses Honduras’ debt risks as low for both public external debt and overall public debt. Honduras is judged to maintain strong debt-carrying capacity, with no debt-burden indicators breaching their relevant thresholds. Although the COVID-19 pandemic and two tropical storms materially affected public finances, the authorities activated the Fiscal Responsibility Law escape clause. Ongoing adherence to the law and reforms aimed at inclusive growth and higher potential output are emphasized to protect sustainability.","Public Disclosure Authorized Public Disclosure Authorized  \nINTERNATIONAL DEVELOPMENT ASSOCIATION  \nINTERNATIONAL MONETARY FUND  \nHONDURAS  \nJoint World Bank-IMF Debt Sustainability Analysis  \nSeptember 2021  \nPrepared Jointly by the staffs ofthe International Development Association (IDA)  \nand the International Monetary Fund (IMF)  \nApproved by Marcello Estevão, Robert R. Taliercio (IDA), Patricia Alonso-Gamo and Maria  \nGonzalez (IMF)  \n\n| Honduras: Joint Bank-Fund Debt Sustainability Analysis |  |\n| --- | --- |\n| Risk of external debt distress | Low |\n| Overall risk of debt distress | Low |\n| Granularity in the risk rating | Tool not applicable |\n| Application of judgment | No |\n\nThe Debt Sustainability Analysis (DSA) assesses that Honduras remains at low risk of debt distress both for public external and overall debt.1,2 Honduras maintains a strong debt-carrying capacity and none of the debt burden indicators breach their respective thresholds. Given the large and unavoidable effects of the COVID-19 pandemic and two tropical storms on public finances, the Honduran authorities triggered the escape clause within the Fiscal Responsibility Law (FRL)3. Nonetheless, Honduras’ proven record of compliance with the FRL provides confidence that the response to the pandemic will not jeopardize debt sustainability. Going forward, continuous adherence to the FRL and institutional reforms to boost inclusive growth and increase the economy’s potential are important to safeguard debt sustainability.  \n1 This DSA updates the previous joint IMF/WB DSA prepared in June 2020 in the context of the Honduras Second Reviews staff report (IMF Country Report No. 20/186) .  \n2 Honduras’s debt carrying capacity is assessed to be strong based on a composite indicator of 3.15 that uses the April 2021 WEO vintage and the 2019 CPIA.  \n3 Under the FRL, the authorities commit to keep the overall fiscal deficit of non-financial public sector below one percent of GDP. An escape clause, to be approved by the legislative branch, allows deviation in exceptional circumstances.  \nBACKGROUND  \n1. Public debt increased significantly in 2020 due to the adverse effects from the pandemic and two tropical storms. The Honduran economy contracted by 9 percent in real terms in 2020. Compared to a scenario in which nominal GDP grew by the average rate in the last 5 years, about 80 percent of the increase in debt is accounted for by the lower GDP. Using the same metric, the fall in GDP accounted for 70 percent of the increase in external public and publicly guaranteed debt (PPG). Real interest rate on total public debt was at 2.7 percent vis-à-vis the average real interest rate of 3.1 percent in 2015-2019. Nominal interest rate on PPG was at 4 percent vis-à-vis the average nominal interest rate of 3.3 percent in 2015-2019.  \nText Figure 1. Honduras: Public Debt  \nSource: Country authorities.  \n2. In percent of GDP, total public debt increased in 2020 due mainly to a large GDP fall and higher external borrowing.4 Gross public debt stood at 54.9 percent of GDP at end-2020, up by 8.4 percentage points of GDP since 2019 (text figure 1 and table 2), of which 37.9 percentage points corresponded to PPG debt and 17 percentage points to domestic debt.  \n3. The PPG external debt has jumped in 2020. Similarly to the public debt, the PPG external debt-to-GDP ratio increased sharply from 31.5 percent in 2019 to 37.9 percent in 2020 on the back of lower nominal GDP. Note that the 10-year, US$600 million bond June placement, was almost entirely used to repay external PPG debt (US$500 million) of the state electricity  \n4 2020 data used in this DSA is preliminary and subject to change. IDA disbursement assumptions are as of May 1, 2021.  \ncompany (ENEE) .5 In its turn, total external debt increased from 38.8 percent in 2019 to 45.3 percent of GDP in 2020—almost entirely driven by the increase in debt to the public sector from multilateral institutions. Multilateral debt increased by about","cbCaik1AntyLquet","https://ap.wps.com/l/cbCaik1AntyLquet","pdf",454040,1,19,"English","en",105,"# Risk assessment summary\n## Debt distress risk ratings\n# Debt dynamics and background\n## Impact of COVID-19 and tropical storms\n## Public debt trends and composition","[{\"question\":\"What does the Debt Sustainability Analysis conclude about Honduras’ debt distress risk?\",\"answer\":\"It concludes Honduras remains at low risk of both external debt distress and overall debt distress. The assessment finds no debt-burden indicators breaching their thresholds.\"},{\"question\":\"Why was the Fiscal Responsibility Law escape clause triggered?\",\"answer\":\"The escape clause was triggered due to the large and unavoidable effects of the COVID-19 pandemic and two tropical storms on public finances.\"},{\"question\":\"What factors drove the increase in public and external debt in 2020?\",\"answer\":\"The document attributes the increase mainly to the sharp fall in GDP and higher external borrowing, with most external borrowing driven by higher multilateral debt and public-sector debt growth.\"}]",1784487928,48,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":85,"head_meta":87,"extra_data":89,"updated_unix":27},"honduras-joint-world-bank-imf-debt-sustainability-analysis-september-2021","",{"@graph":35,"@context":84},[36,53,67],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/honduras-joint-world-bank-imf-debt-sustainability-analysis-september-2021/110964/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":61,"encodingFormat":60,"isAccessibleForFree":62,"interactionStatistic":63},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-19",true,{"@type":64,"interactionType":65,"userInteractionCount":4},"InteractionCounter",{"@type":66},"ViewAction",{"@type":68,"mainEntity":69},"FAQPage",[70,76,80],{"name":71,"@type":72,"acceptedAnswer":73},"What does the Debt Sustainability Analysis conclude about Honduras’ debt distress risk?","Question",{"text":74,"@type":75},"It concludes Honduras remains at low risk of both external debt distress and overall debt distress. The assessment finds no debt-burden indicators breaching their thresholds.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"Why was the Fiscal Responsibility Law escape clause triggered?",{"text":79,"@type":75},"The escape clause was triggered due to the large and unavoidable effects of the COVID-19 pandemic and two tropical storms on public finances.",{"name":81,"@type":72,"acceptedAnswer":82},"What factors drove the increase in public and external debt in 2020?",{"text":83,"@type":75},"The document attributes the increase mainly to the sharp fall in GDP and higher external borrowing, with most external borrowing driven by higher multilateral debt and public-sector debt growth.","https://schema.org",{"og:url":51,"og:type":86,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":88,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":91},[92,96,100,104,109,114,119,122,127,130,134],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":93,"show_sort_weight":94,"slug":95},"Story & Novel",90,"story-novel",{"id":46,"doc_module":4,"doc_module_name":45,"category_name":97,"show_sort_weight":98,"slug":99},"Literature",80,"literature",{"id":52,"doc_module":4,"doc_module_name":45,"category_name":101,"show_sort_weight":102,"slug":103},"Exam",70,"exam",{"id":105,"doc_module":4,"doc_module_name":45,"category_name":106,"show_sort_weight":107,"slug":108},5,"Comic",60,"comic",{"id":110,"doc_module":4,"doc_module_name":45,"category_name":111,"show_sort_weight":112,"slug":113},6,"Technology",50,"technology",{"id":115,"doc_module":4,"doc_module_name":45,"category_name":116,"show_sort_weight":117,"slug":118},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":45,"category_name":12,"show_sort_weight":120,"slug":121},30,"research-report",{"id":123,"doc_module":4,"doc_module_name":45,"category_name":124,"show_sort_weight":125,"slug":126},9,"Religion & Spirituality",20,"religion-spirituality",{"id":125,"doc_module":4,"doc_module_name":45,"category_name":128,"show_sort_weight":125,"slug":129},"World Cup","world-cup",{"id":131,"doc_module":4,"doc_module_name":45,"category_name":132,"show_sort_weight":131,"slug":133},10,"Lifestyle","lifestyle",{"id":21,"doc_module":4,"doc_module_name":45,"category_name":135,"show_sort_weight":105,"slug":136},"General","general"]