Honduras set to receive US$350mn in CAF loans

Honduras has signed agreements with Latin American development bank CAF to obtain three new loans for a combined total of US$350mn that will be used for infrastructure works, to support producers and for social programs. 

A delegation from CAF led by bank president Sergio Díaz met with the Honduran finance minister Marlon Ochoa, infrastructure and transport minister Octavio Pineda and other officials on Monday to sign the deals for the three loans, local media reported.   

US$160mn of the money will be used to build the San Pedro Sula-west highway, which is being overseen by the infrastructure and transport ministry, according to Prensa Latina. 

Another US$40mn will be used to support coffee producers through financial instruments, and to fortify the national bank for agricultural development (Banadesa).  

Meanwhile, US$70mn will be used for public pre-investment and investment programs provided by the finance ministry, and US$80mn for a gender equality and social inclusion program.

Besides the loans, finance minister Ochoa also said that the country had received a donation to carry out pre-construction studies on the country's interoceanic rail corridor project.

“We have received a donation for the realization of studies [for the project] which represents a vision towards the future for the logistics and commercial development of our country and the entire Central American region,” he was reported as saying by state-run media outlet Canal 8.