Money

Inter-Mac International, LLC of the United States will provide US$100 million in financing to the government of Honduras for construction of low-cost housing. According to the company's president, Xavier Arguello, the loan agreement will be signed in Tegucigalpa on Wednesday by President Porfirio Lobo. The signing will coincide with the delivery of 100 completed homes to low-income families in the northern city Choloma. The homes were also financed through a loan from Inter-Mac. A total of 3,500 housing units are planned for the project in Choloma, which is also envisioned to include paved roads, green areas, and potable water and electrical power systems. Families receiving homes, valued at about US$10,000 each, will pay an initial sum of US$240, and then monthly payments of US$100 over 25 years. (7/25/10)

The Honduran government is negotiating the possible export of cattle to Egypt. According to Honduras' Vice-Minister for Agriculture, Juan Carlos Ordóñez, and the president of the National Federation of Farmers and Ranchers (Fenagh), Leopoldo Durán, the government of Egypt is interested in purchasing 3,000 head of cattle from Honduras every three months. One of the main issues under discussion is whether the shipments to Egypt should be in the form of live cattle or slaughtered beef, which would determine if the method transport would be by aircraft or refrigerated ships. Honduras' cattle industry employs approximately 300,000 workers. It accounts for some 3 million head of cattle -- down from 4 million a decade ago. New exports to Egypt, as well as El Salvador and Nicaragua, signal a possible upturn in business prospect for the industry. (7/25/10)

The Honduran government is negotiating the possible export of cattle to Egypt. According to Honduras' Vice-Minister for Agriculture, Juan Carlos Ordóñez, and the president of the country's National Federation of Farmers and Ranchers (Fenagh), Leopoldo Durán, the government of Egypt has expressed interest in purchasing 3,000 head of cattle from Honduras every three months. One of the main issues under discussion is whether the shipments to Egypt should be in the form of live cattle or slaughtered beef, which would determine if the method of transport would be aircraft or refrigerated ships. Honduras' cattle industry employs approximately 300,000 workers. It accounts for some 3 million head of cattle -- down from 4 million a decade ago. New exports to Egypt, as well as El Salvador and Nicaragua, signal a possible upturn in business prospect for the industry. (7/25/10) (photo courtesy Internet)

The Inter-American Development Bank (IDB) yesterday signed an agreement to loan US$96 million to the government of Honduras. Of the total funds, US$77 million are allocated for a program to improve the transport of passengers and cargo in the agricultural corridor between Tegucigalpa and Puerto Castilla. The remaining US$19 million will be spent on a project to help prevent and mitigate the risk of natural disasters. "We know that all the work undertaken by the government, civil society, and the private sector [in Honduras] can be destroyed in a matter of seconds whenever there is a natural disaster, and so now this loan will allow for prevention and mitigation projects at the local level and also strengthen early-warning systems," said Gina Montiel of the IDB. (7/16/10)

Read more...

The amount of money sent to Honduras by Honduran nationals living abroad rose by 1.5 percent during the first half of the year. According to the Central Bank of Honduras, remittances for January-June totaled US$1.245 billion, compared to US$1.226 billion for the same period in 2009. The increase represents good news for Honduras, as remittances are the primary generator of revenue for the country, easily surpassing the maquila, tourism, and agriculture sectors. In 2009, remittances to Honduras accounted for US$2.408 billion in income -- a decline from the previous year due to the world financial crisis and, to a lesser degree, the rise in deportations of undocumented Hondurans from the United States. The Central Bank has been tracking these money transfers for many years. In 2001, remittances were estimated at US$460 million; in 2002, US$770 million; in 2003, US$862 million; in 2004, US$1.134 billion; in 2005, US$1.763 billion; in 2006; US$2.359 billion; in 2007, US$2.512 billion; and in 2008, US$2.707 billion. (7/10/10) (photo courtesy Internet)

The United States government has established an initial fund of US$100 million for Honduras to help pay for emergency response needs related to tropical storm Agatha that has caused severe flooding throughout Central America during the past two days. The governments of Honduras, El Salvador, and Guatemala are working under declared states of emergency to facilitate the distribution of aid to affected areas. According to Honduras' emergency management agency, COPECO, at least 17 people have died in the country as a result of the storm. In addition, approximately 12,257 people have either been evacuated or have lost crops, 3,120 people have been taken to temporary shelters, and 539 families have been left homeless. COPECO maintains red alert situations in the departments of Choluteca and Valle in the south, Francisco Morazán in the central region, and Cortés and Yoro in the north. (6/1/10)

President Porfirio Lobo will mediate negotiations between representatives of the business and labor sectors in Honduras today in an effort to reach agreement on an increase in the minimum wage for 2010. The current minimum wage is Lps 5,500 (US$289) per month for workers in urban areas and Lps 4,450 (US$234) for rural workers. Talks between business and labor broke down on April 28, as sides were unable to come up with a compromise rate increase. On April 22, business representatives offered an increase of Lps 203 (US$11), or 3.7 percent, while labor representatives were willing to accept an increase of Lps 825 (US$43), or 15 percent. (5/17/10)

Read more...

Luis Larach, president of the Cortés Chamber of Commerce and Industry (CCIC), said today that due to the upsurge in crime and violence in Honduras in recent months, foreign investment in the country has been non-existent during the first quarter of this year. The perceived sense of insecurity, fueled by the highly-publicized series of killings of journalists, has discouraged investors from abroad, thus exacerbating an already difficult investment climate. According to the Central Bank of Honduras, US$485 million was invested in the country during 2009 -- down 44.7 percent from US$877 million in 2008. A total of seven Honduran journalists have been killed during the past six weeks, including Jorge Alberto Orellana, host of the TV program "Georgino Live". Mr. Orellana was shot Tuesday in San Pedro Sula by an unidentified gunman as he was leaving his station's office building. (4/22/10) (photo courtesy Internet)

The World Bank (WB) today donated Lps 32 million (US$1.7 million) to the government of Honduras. The funding agreement was signed by Honduran Finance Minister William Chong Wong and the WB's representative in Honduras, Geoffrey Bergen. The money will be invested in the Pilot Program for the Administration of Education for Highly Vulnerable Communities. The effort, which will be overseen by Minister of Education Alejandro Ventura, is aimed at expanding the levels of education for secondary schools, PROHECO primary schools, and schools in remote communities. (4/12/10)

President Porfirio Lobo met Tuesday with Canada's ambassador to Honduras, Neil Reeder, and a group of Canadian businessmen, including the president of Aura Minerals, Inc., Patrick Downey, and investor David Petroff. Ambassador Reeder expressed his interest in expanding Canada's investments in the Honduran mining and maquila sectors. He specifically mentioned the need to establish new mining regulations that would both protect the interests of foreign mining companies in Honduras and create transparency in mining operations. Mr. Reeder estimated potential investments in Honduras of up to US$700 million and pointed out the benefits to the country in terms of jobs creation and additional tax revenues. (4/7/10)

Read more...