Economic growth for 2000 reached 5% 

The Minister of Finance, Gabriela Nunez announced this week that the Honduran economy has had its first non-recession year since the hurricane Mitch disaster.

According to  to the Minister, the economy of the country grew 5% in the year 2000, a figure that stands out in Latin America, where the average growth rate was only 3.9%.  In 1999, Honduras's economy shrunk by 1.9%.  She also stated that the national deficit was less than anticipated and that it had been entirely financed with external funding.  She said that a smaller deficit helped reduce inflation.  She also stated that the total amount of external funds received added up to US$220 million, US$55 less than expected due to funds frozen because of Honduras still not passing certain modernization laws requiered by international lending institutions that were destined to the Government Modernization Program.--El Heraldo

BID approves US$37.6 million for Honduras 

The Inter American Development Bank approved three loans for Honduras this week, destined to education, Congressional modernization and institutional strengthening.  Of the US$37.6, US$23 are destined to improving middle school education in rural areas and the preparation of a high school reform bill;  US$2.6 will be used to modernizing the national congress by providing new technology and the services of consultants.  The third loan of US$12 is for financing preinvestment studies and institutional strengthening for a more efficient execution of the National Transformation Plan. ---El Heraldo

Canada suspends bilateral debt payments 

The Canadian Minister of Finance, Paul Martin, announced last week that Canada will suspend bilateral debt payments for countries included in the Heavily Indebted Poor Countries as of January 2001.  The Minister stated that this move is aimed at allowing these countries to spend these resources in such areas as health, education and poverty reduction.

Martín explained that the debts would be completely canceled once these countries had completed the HIPC process and include, Benin, Bolivia, Cameron, Ethiopia, Ghana, Honduras, Madagascar, Senegal, Tanzania, and Zambia. --El Heraldo

Honduras contemplates issues stocks in dollars 

The Minister of Finance, Gabriela Nuñez, announced this week that the government is currently considering issuing stocks in dollars.  She stated that this measure would be aimed at attracting investment as well as be the first step towards dollarizing the national economy.  El Salvador and Guatemala have already announced they will dollarize their currencies beginning January 2000. --El Heraldo

Coffee sector in crisis 

Representatives of the coffee sector have asked for government assistance in overcoming the crisis they are currently experiencing. The manager, Juan Jose Osorto,  of the Honduran Coffee Institute stated that the government should either suspend payments to itself during the next two coffee seasons for the approximately Lps. 700 million they owe;  or alternatively, seek financing from international organizations for a long term US$90 million loan.    Osorto stated that the second alternative is most viable because the government can serve as guarantor and help solve some of the sectors problems definitely, because short term government moratoriums only solve them temporarily. -- El Heraldo

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