The Inter-American Development Bank (IDB) approved $40 million to strengthen the stability of the financial system and expand access to financial services in Honduras.
The package of measures aims to improve the regulatory framework and the supervision processes based on best practices. The operation also seeks to enhance the sustainability of these reforms through the improvement of the organizational structure of the National Banking and Insurance Commission of Honduras, through better supervision and an environment conducive to expanded coverage of the financial system.
This is the second loan operation in a programmatic series based on policy reforms. The operation is the result of an ongoing dialogue with the country’s public and private sectors.
“These reforms have supported the stability of the financial system,” said Rosa Matilde Guerrero, IDB project team leader and leading specialist in financial markets. “At the same time, the measures have established some essential pillars for creating a setting that promotes access to financial products and services by the lowest-income segment of the population and by micro, small and medium-size businesses.”
The financing consists of a 30-year Ordinary Capital loan from the IDB for $28 million, with a grace period of 5.5 years and a fixed interest rate. The IDB's Fund for Special Operations will lend $12 million for 40 years, with a 40-year grace period and an annual interest rate of 0.25 percent.