(Bloomberg) -- Honduras’ government has started efforts to “reprofile” public debt as President Xiomara Castro seeks to free up funds for investment.
The Finance Ministry said in a statement on X it has already begun liability management efforts after Castro ordered it and the central bank to “reprofile the totality of the public debt” in 2025 “with the goal of improving state revenue for productive and social investments.”
Castro kicked off her presidency in 2022 by saying she would seek to restructure Honduras’ debt. She said in a Jan. 1 speech that the nation’s debt has ballooned to $20 billion from $3 billion in 2009, and that her administration is investigating how the funds were spent.
The Finance Ministry didn’t provide additional details of its efforts in the statement, and did not immediately respond to requests for comment.
The country’s notes were edging lower for the session. Honduras last tapped international bond markets with a $700 million sale in November. On average the nation’s debt has returned 4.9% since the end of 2023, broadly underperforming a Bloomberg index of peers during that period.
In December, the International Monetary Fund’s executive board completed the first and second reviews of the country’s $820 million program with the lender. The reviews unlocked a disbursement of $198 million.
--With assistance from Maria Elena Vizcaino.
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