Honduras - Joint World Bank-IMF Debt Sustainability Analysis
The Debt Sustainability Analysis (DSA) indicates that Honduras stands at low risk of debt distress both for public external debt and overall debt, which represents an upgrade from the 2018 DSA, where risk of debt distress was assessed as moderate....
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/298461570770698277/Honduras-Joint-World-Bank-IMF-Debt-Sustainability-Analysis-July-2019 http://hdl.handle.net/10986/32558 |
| Summary: | The Debt Sustainability Analysis (DSA)
indicates that Honduras stands at low risk of debt distress
both for public external debt and overall debt, which
represents an upgrade from the 2018 DSA, where risk of debt
distress was assessed as moderate. The DSA was undertaken
under the revised debt-sustainability framework for low
income countries (LIC DSF), whereby Honduras’s debt carrying
capacity was upgraded from medium to strong. Changes in the
debt-sustainability framework have contributed to the risk
of debt distress improvement. A proven record of compliance
with the Fiscal Responsibility Law (FRL) and solid
macroeconomic conditions also contributed to rate Honduras’
risk of debt distress as low. Going forward, adherence to
the FRL and institutional reforms to boost inclusive growth
and increase the economy’s potential are critical to
maintain debt sustainability. |
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