Government of Honduras and CABEI sign US$200 million loan contract to mitigate rising fuel and electricity costs
This financing seeks to support the measures implemented by the Government that benefit more than 3.8 million Hondurans by reducing the economic impact suffered as a result of the fuel and energy crisis.
Mérida, Yucatán, September XX, 2022.- The Government of the Republic of Honduras and the Central American Bank for Economic Integration (CABEI) formalized a US$200 million loan from the "Temporary Support Program for the Fuel Crisis", approved by the multilateral institution in June of this year, which is aimed at recognizing and reimbursing the efforts made by the Honduran authorities in the application of mechanisms to mitigate the rise in fuel and electricity prices.
The measures being implemented by the government and being recognized by this loan include: a reduction in the tax on super, regular, and diesel gasoline; an additional subsidy of 50% of the increase in the price of diesel; and a subsidy for customers with consumption equal to or less than 150 kWh of electricity.
CABEI's Executive President, Dr. Dante Mossi, said: "We are very pleased to have responded swiftly and expeditiously to the challenges that the fuel crisis has generated in our member countries through an innovative Program to which, in addition to Honduras, El Salvador, Nicaragua, Costa Rica and the Dominican Republic have acceded, contributing to the resilience and the economy of the most vulnerable families in the Central American region.” The agreement was signed by CABEI Executive President, Dr. Dante Mossi and the Secretary of State in the Office of Finance of the Republic of Honduras, Mrs. Rixi Moncada Godoy. Following this formalization, the financing will be sent for final approval by the Honduran National Congress.
This initiative is part of CABEI's 2020-2024 Institutional Strategy in its Sustainable Competitiveness axis, with which it seeks to promote the strengthening of economic factors, in its commercial sphere, to advance the sustainable development of the countries in the region.