Abstract
Staff Report for the 2019 Article IV Consultation and Request for a Stand-By Arrangement and an Arrangement Under the Standby Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Honduras
Fund Relations
(As of April 30, 2019)
Financial Relations
Membership Status: Joined: December 27, 1945
General Resources Account:
| SDR Million | % Quota | |
|---|---|---|
| Quota | 249.8 | 100.00 |
| Fund holdings of currency (Exchange Rate) | 211.1 | 84.51 |
| Reserve Tranche Position | 38.7 | 15.49 |
| SDR Million | % Quota | |
|---|---|---|
| Quota | 249.8 | 100.00 |
| Fund holdings of currency (Exchange Rate) | 211.1 | 84.51 |
| Reserve Tranche Position | 38.7 | 15.49 |
SDR Department:
| SDR Million | % Allocation | |
|---|---|---|
| Net cumulative allocation | 123.85 | 100.00 |
| Holdings | 53.46 | 43.16 |
| SDR Million | % Allocation | |
|---|---|---|
| Net cumulative allocation | 123.85 | 100.00 |
| Holdings | 53.46 | 43.16 |
Outstanding Purchases and Loans: None
Latest Financial Arrangements:
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| Stand-By | 12/03/2014 | 12/02/2017 | 77.70 | 0.00 |
| SCF | 12/03/2014 | 12/02/2016 | 51.80 | 0.00 |
| Stand-By | 10/01/2010 | 3/31/2012 | 64.75 | 0.00 |
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| Stand-By | 12/03/2014 | 12/02/2017 | 77.70 | 0.00 |
| SCF | 12/03/2014 | 12/02/2016 | 51.80 | 0.00 |
| Stand-By | 10/01/2010 | 3/31/2012 | 64.75 | 0.00 |
Projected Payments to Fund
(SDR Million; based on existing use of resources and present holdings of SDRs):
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Principal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Charges/Interest | 0.60 | 0.81 | 0.81 | 0.81 | 0.81 |
| Total | 0.60 | 0.81 | 0.81 | 0.81 | 0.81 |
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Principal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Charges/Interest | 0.60 | 0.81 | 0.81 | 0.81 | 0.81 |
| Total | 0.60 | 0.81 | 0.81 | 0.81 | 0.81 |
| Implementation of Enhanced HIPC Initiative: Enhanced Framework | ||||
| Commitment of HIPC Assistance | ||||
| Decision point date | June 20001 | |||
| Assistance committed (NPV terms) | ||||
| Total assistance (US$ million) | 556.00 | |||
| Of which: IMF assistance (US$ million) | 30.30 | |||
| Completion point date | April 2005 | |||
| Disbursement of IMF Assistance (SDR million) | ||||
| Amount disbursed | 22.66 | |||
| Interim assistance | 8.80 | |||
| Completion point balance | 13.86 | |||
| Additional disbursement of interest income | 3.70 | |||
| Total Disbursements | 26.36 | |||
| Implementation of MDRI Assistance | ||||
| Total Debt Relieve (SDR million)2 | 107.46 | |||
| Of which: MDRI | 98.24 | |||
| HIPC | 9.21 | |||
| Debt Relief by Facility (SDR million) | ||||
| Implementation of Enhanced HIPC Initiative: Enhanced Framework | ||||
| Commitment of HIPC Assistance | ||||
| Decision point date | June 20001 | |||
| Assistance committed (NPV terms) | ||||
| Total assistance (US$ million) | 556.00 | |||
| Of which: IMF assistance (US$ million) | 30.30 | |||
| Completion point date | April 2005 | |||
| Disbursement of IMF Assistance (SDR million) | ||||
| Amount disbursed | 22.66 | |||
| Interim assistance | 8.80 | |||
| Completion point balance | 13.86 | |||
| Additional disbursement of interest income | 3.70 | |||
| Total Disbursements | 26.36 | |||
| Implementation of MDRI Assistance | ||||
| Total Debt Relieve (SDR million)2 | 107.46 | |||
| Of which: MDRI | 98.24 | |||
| HIPC | 9.21 | |||
| Debt Relief by Facility (SDR million) | ||||
| Eligible Debt | |||
| Delivery Date | GRA | PRGF | Total |
| January 2006 | N/A | 107.46 | 107.46 |
| Eligible Debt | |||
| Delivery Date | GRA | PRGF | Total |
| January 2006 | N/A | 107.46 | 107.46 |
Implementation of Catastrophe Containment and Relief (CCR): Not Applicable.
Safeguards Assessment: An updated safeguards assessment of the BCH is underway. The previous assessment found that the BCH Law continues to pose a significant risk to central bank autonomy and that the bank’s Board and audit committee do not have any independent members, which undermines these bodies’ oversight function. The assessment recommended amendments to the BCH Law to protect the bank from political interference, establish its financial autonomy, and strengthen its governance arrangements. The assessment also recommended that the BCH adopt International Financial Reporting Standards (IFRS). While the BCH Board approved a plan to adopt IFRS for FY 2018, the implementation is significantly delayed.
Nonfinancial Relations
Exchange Rate Arrangement:
Honduras’ de jure exchange rate arrangement is classified as a crawling. The de facto exchange rate arrangement is classified as a crawling peg since July 2011, when the Central Bank of Honduras (BCH) reactivated the arrangement that had been in operation until mid-2005.
Honduras has three possible exchange rates at any given time: (i) the one from the BCH FX auction, (ii) the one from the FX interbank market, and (iii) the official exchange rate (TCR—Tipo de Cambio de Referencia).
Transactions at the BCH foreign exchange auction and at the foreign exchange interbank market take place according to prices that are within a band established by the BCH as ±1 percent above or below the average of base price for the preceding seven auctions.3
The official exchange rate of the lempira (TCR) is calculated daily as the weighted average of the exchange rates in transactions made in the preceding business day at the BCH’s foreign exchange auction and at the interbank foreign exchange market. The daily TCR is used for (i) sales of foreign exchange by authorized dealers to the BCH, (ii) sales and purchases of foreign exchange by authorized dealers from their clients, and (iii) sales and purchases of foreign exchange between the public sector and the BCH.
Honduras has accepted the obligations under Article VIII, Sections 2, 3, and 4 of the Articles of Agreement and currently maintains two multiple currency practices subject to Fund approval under Article VIII, Section 3:
One MCP arises because there is no mechanism to prevent a potential deviation of more than 2 percent between the TCR of the day at which certain transactions take place and the exchange rates at which foreign exchange is sold at the FX auction or the FX interbank market at that day.
A second MCP arises from the possible use of previous days’ official exchange rates (TCR) in certain exchange rate transactions (e.g. in FX sales by authorized dealers to the BCH of amounts bought from customers or amounts that exceed the limits set by the BCH for such dealers) which rates may potentially deviate by more than two percent from the TCR and the interbank market rate on the day when foreign exchange rate transactions take place.
Last Article IV Consultation:
On May 30, 2018 the Executive Bard concluded the 2018 Article IV Consultation.
FSAP, FSSR participation and ROSCs. Fiscal ROSC conducted on February 26–March 2, 2001 (IMF Country Report No. 02/16) and updated (IMF Country Report No. 05/256). Data ROSC data conducted on July 8–24, 2003 (IMF Country Report No. 05/230). FSAP conducted on October 14–19, 2002 and January 20–February 4, 2003. FSAP Update conducted on September 24 to October 9, 2007. FSSR conducted on June 8–9 and July 11–22, 2016.
Technical Assistance:
Honduras has received substantial technical assistance. The table below details assistance provided by department since January 2015.
| Department | Purpose | Time of Delivery |
|---|---|---|
| LEG | Legal Framework for Bank Resolution | May 2016 |
| Governance Diagnostic | March, June 2019 | |
| MCM | FX Lending Prudential Requirements | Feb 2015 |
| CAPTAC-DR: Strengthening Monetary Policy Framework | Feb 2015 | |
| Financial Supervision | March 2015 | |
| Strengthening Monetary Policy Operational Framework | May 2015 | |
| CAPTAC-DR: Risk Based Supervision Implementation | May, June 2015 | |
| Domestic consolidated supervision | June 2015 | |
| CAPTAC-DR: Strengthening and Expanding the Macroeconomic Model | August 2015 | |
| Operational risk supervision | August 2015 | |
| Modernizing the Foreign Exchange System | Sep 2015 | |
| CAPTAC-Strengthening Capacities for Financial Stabilities Analysis | Sept 2015 | |
| FSSR Scoping Mission | January 2016 | |
| Regional Macroprudential Policies, Central America Countries | January 2016 | |
| Macroprudential policies | January 2016 | |
| CAPTAC: Training on Macroeconomic Forecast Models | February 2016 | |
| Operational risk supervision | February 2016 | |
| CAPTAC: Forecast Efficiency of the Central Bank´s Semi-Structural Macroeconomic Model | March 2016 | |
| CAPTAC: Support capacity building projection and economic analysis | April 2016 | |
| Stress testing models for credit risk with data panel | April 2016 | |
| Risk-based supervision | April 2016 | |
| Financial Sector Stability Review (FSSR) | July 2016 | |
| Modernization of the Monetary Policy Framework: Scoping mission | July 2016 | |
| Liquidity risk regulation | August, November 2016 | |
| Strengthening of the credit, market and liquidity off-site supervision | September 2016 | |
| Modernization of the Monetary Policy Framework: Roadmap | September 2016 | |
| Enhancing the monetary policy operational framework and liquidity management | October 2016 | |
| Strengthening of the credit, market and liquidity off-site supervision | February 2017 | |
| Strengthening the stress testing framework for credit risk | March 2017 | |
| Monetary Policy Modernization: Inflation targeting roadmap and FPAS work plan | May 2017 | |
| CAPTAC: Strengthening the Monetary and Exchange Rate Policies Operational Frameworks | June 2017 | |
| CAPTAC: Stress Test | February 2018 | |
| Adoption of International Financial Reporting Standards (IFRS) | March 2018 | |
| Securities Market and Supervision | July, September 2018 | |
| CAPTAC: Financial Supervision | July, August, September 2017, March 2018, May 2019 | |
| CAPTAC: Operational Risk | November 2018, March 2019 | |
| Monetary policy modeling | November 2018 | |
| CAPTAC: Market risk and IRRBB | December 2018; February 2019 | |
| FPAS review | May 2019 | |
| Modernization of exchange rate policy and operations, and monetary policy implementation | May 2019 | |
| FAD | Medium-term expenditure framework | March, July, November 2015 |
| Treasury Single Account | July, October 2015 | |
| CAPTAC: Degree of maturity of government paper | July 2015 | |
| CAPTAC: Strengthen control of VAT credit | May, December 2015 | |
| Introducing PBB to MDAs | August 2015 | |
| CAPTAC: Strengthen Audit Procedures | September 2015 | |
| Ex-post Inspection | October 2015 | |
| Tax Administration | October, December 2015 | |
| CAPTAC: Medium-term Expenditure Framework | January 2016 | |
| Treasury Single Account | February, June, August, November 2016 | |
| Customs Administration | March, April, December 2016 | |
| Streamlining Tax Exemptions | March 2016 | |
| Tax Administration | April, May 2016 | |
| Strategic Change Management | April 2016 | |
| CAPTAC: Strengthen audit procedures | May, October 2016 | |
| Budget – Preparation | June 2016 | |
| Fiscal Risks | July 2017 | |
| Taxpayer Service Improvement | February, October 2017 | |
| Treasury Single Account | February 2017 | |
| CAPTAC: Strengthen control of VAT credit | March 2017 | |
| Budget – Preparation | March 2017 | |
| CAPTAC: Strengthen audit procedures | March, October 2017 | |
| Fiscal Risks | April 2017 | |
| CAPTAC: Customs Administration | April, October 2017 | |
| CAPTAC: Tax Administration | January, February 2018 | |
| CAPTAC: Fiscal Statistics | December 2017 | |
| CAPTAC: Public Finance Management | April 2018 | |
| Tax Administration | June (CAPTAC), August, September (CAPTAC), October, November, December (CAPTAC) 2018, February, May 2019 | |
| CAPTAC: Strengthen tax audit | June, July 2018 | |
| CAPTAC: Treasury – Training plan | July 2018 | |
| Customs Administration | October 2018 | |
| CAPTAC: Budget | October 2018 | |
| CAPTAC: Implementation of new organizational structure | October 2018 | |
| CAPTAC: Risk Management | October 2018, April 2019 | |
| CAPTAC: Customs Administration (post clearance audit) | November 2018 | |
| Fiscal Transparency Evaluation | November 2018 | |
| Tax Policy | November 2018 | |
| CAPTAC: Treasury – TSA | January 2019 | |
| CAPTAC: Post Clearance Process | March, April 2019 | |
| CAPTAC: Workshop on Customs Intelligence | April 2019 | |
| CAPTAC: Strategic Planning | April 2019 | |
| STA | Balance of Payments and IIP | Feb 2015 |
| Topics of the Financial Account | March 2015 | |
| CAPTAC: National Accounts-Statistics and Construction Data Sources | May 2015 | |
| CAPTAC: Export and Import Price Index | May 2015 | |
| Balance of Payments and IIP | July 2015 | |
| External debt | July 2015 | |
| CAPTAC: Consumer Price Index | September 2015 | |
| CAPTAC: Balance of Payments | November 2015 | |
| CAPTAC: Quarterly National Accounts | January 2016 | |
| Balance of Payments and IIP | June-July 2016 | |
| Basic STA surveys and directories | March 2016 | |
| Enhanced General Data Dissemination System (e-GDDS) | March 2016 | |
| National Accounts Source Data | March 2016 | |
| National Accounts Statistics | April 2016 | |
| Special Surveys of Agricultural Products | April 2016 | |
| Financial Accounts – Cash Flow | April 2016 | |
| Balance of Payments | June 2016 | |
| CAPTAC: Non-observed Economy-Employment Matrix | July 2016 | |
| CAPTAC: National Accounts Rebasing Process | July 2016 | |
| CAPTAC: Improvements Quarterly Construction Survey-Revision of Sample Frames | March 2017 | |
| CAPTAC: National Accounts Rebasing Project | June 2017 | |
| CAPTAC: Non-observed Economy-Employment Matrix | August 2017 | |
| CAPTAC: Balance of payments and IIP statistics | March 2018 | |
| CAPTAC: National Accounts | May, June, July, September, November 2018; March, May 2019 | |
| CAPTAC: Government Finance Statistics | May, July 2018, May 2019 | |
| CAPTAC: Classifications | October 2018 | |
| CAPTAC: Quarterly data compilation and OSDS | January 2019 |
| Department | Purpose | Time of Delivery |
|---|---|---|
| LEG | Legal Framework for Bank Resolution | May 2016 |
| Governance Diagnostic | March, June 2019 | |
| MCM | FX Lending Prudential Requirements | Feb 2015 |
| CAPTAC-DR: Strengthening Monetary Policy Framework | Feb 2015 | |
| Financial Supervision | March 2015 | |
| Strengthening Monetary Policy Operational Framework | May 2015 | |
| CAPTAC-DR: Risk Based Supervision Implementation | May, June 2015 | |
| Domestic consolidated supervision | June 2015 | |
| CAPTAC-DR: Strengthening and Expanding the Macroeconomic Model | August 2015 | |
| Operational risk supervision | August 2015 | |
| Modernizing the Foreign Exchange System | Sep 2015 | |
| CAPTAC-Strengthening Capacities for Financial Stabilities Analysis | Sept 2015 | |
| FSSR Scoping Mission | January 2016 | |
| Regional Macroprudential Policies, Central America Countries | January 2016 | |
| Macroprudential policies | January 2016 | |
| CAPTAC: Training on Macroeconomic Forecast Models | February 2016 | |
| Operational risk supervision | February 2016 | |
| CAPTAC: Forecast Efficiency of the Central Bank´s Semi-Structural Macroeconomic Model | March 2016 | |
| CAPTAC: Support capacity building projection and economic analysis | April 2016 | |
| Stress testing models for credit risk with data panel | April 2016 | |
| Risk-based supervision | April 2016 | |
| Financial Sector Stability Review (FSSR) | July 2016 | |
| Modernization of the Monetary Policy Framework: Scoping mission | July 2016 | |
| Liquidity risk regulation | August, November 2016 | |
| Strengthening of the credit, market and liquidity off-site supervision | September 2016 | |
| Modernization of the Monetary Policy Framework: Roadmap | September 2016 | |
| Enhancing the monetary policy operational framework and liquidity management | October 2016 | |
| Strengthening of the credit, market and liquidity off-site supervision | February 2017 | |
| Strengthening the stress testing framework for credit risk | March 2017 | |
| Monetary Policy Modernization: Inflation targeting roadmap and FPAS work plan | May 2017 | |
| CAPTAC: Strengthening the Monetary and Exchange Rate Policies Operational Frameworks | June 2017 | |
| CAPTAC: Stress Test | February 2018 | |
| Adoption of International Financial Reporting Standards (IFRS) | March 2018 | |
| Securities Market and Supervision | July, September 2018 | |
| CAPTAC: Financial Supervision | July, August, September 2017, March 2018, May 2019 | |
| CAPTAC: Operational Risk | November 2018, March 2019 | |
| Monetary policy modeling | November 2018 | |
| CAPTAC: Market risk and IRRBB | December 2018; February 2019 | |
| FPAS review | May 2019 | |
| Modernization of exchange rate policy and operations, and monetary policy implementation | May 2019 | |
| FAD | Medium-term expenditure framework | March, July, November 2015 |
| Treasury Single Account | July, October 2015 | |
| CAPTAC: Degree of maturity of government paper | July 2015 | |
| CAPTAC: Strengthen control of VAT credit | May, December 2015 | |
| Introducing PBB to MDAs | August 2015 | |
| CAPTAC: Strengthen Audit Procedures | September 2015 | |
| Ex-post Inspection | October 2015 | |
| Tax Administration | October, December 2015 | |
| CAPTAC: Medium-term Expenditure Framework | January 2016 | |
| Treasury Single Account | February, June, August, November 2016 | |
| Customs Administration | March, April, December 2016 | |
| Streamlining Tax Exemptions | March 2016 | |
| Tax Administration | April, May 2016 | |
| Strategic Change Management | April 2016 | |
| CAPTAC: Strengthen audit procedures | May, October 2016 | |
| Budget – Preparation | June 2016 | |
| Fiscal Risks | July 2017 | |
| Taxpayer Service Improvement | February, October 2017 | |
| Treasury Single Account | February 2017 | |
| CAPTAC: Strengthen control of VAT credit | March 2017 | |
| Budget – Preparation | March 2017 | |
| CAPTAC: Strengthen audit procedures | March, October 2017 | |
| Fiscal Risks | April 2017 | |
| CAPTAC: Customs Administration | April, October 2017 | |
| CAPTAC: Tax Administration | January, February 2018 | |
| CAPTAC: Fiscal Statistics | December 2017 | |
| CAPTAC: Public Finance Management | April 2018 | |
| Tax Administration | June (CAPTAC), August, September (CAPTAC), October, November, December (CAPTAC) 2018, February, May 2019 | |
| CAPTAC: Strengthen tax audit | June, July 2018 | |
| CAPTAC: Treasury – Training plan | July 2018 | |
| Customs Administration | October 2018 | |
| CAPTAC: Budget | October 2018 | |
| CAPTAC: Implementation of new organizational structure | October 2018 | |
| CAPTAC: Risk Management | October 2018, April 2019 | |
| CAPTAC: Customs Administration (post clearance audit) | November 2018 | |
| Fiscal Transparency Evaluation | November 2018 | |
| Tax Policy | November 2018 | |
| CAPTAC: Treasury – TSA | January 2019 | |
| CAPTAC: Post Clearance Process | March, April 2019 | |
| CAPTAC: Workshop on Customs Intelligence | April 2019 | |
| CAPTAC: Strategic Planning | April 2019 | |
| STA | Balance of Payments and IIP | Feb 2015 |
| Topics of the Financial Account | March 2015 | |
| CAPTAC: National Accounts-Statistics and Construction Data Sources | May 2015 | |
| CAPTAC: Export and Import Price Index | May 2015 | |
| Balance of Payments and IIP | July 2015 | |
| External debt | July 2015 | |
| CAPTAC: Consumer Price Index | September 2015 | |
| CAPTAC: Balance of Payments | November 2015 | |
| CAPTAC: Quarterly National Accounts | January 2016 | |
| Balance of Payments and IIP | June-July 2016 | |
| Basic STA surveys and directories | March 2016 | |
| Enhanced General Data Dissemination System (e-GDDS) | March 2016 | |
| National Accounts Source Data | March 2016 | |
| National Accounts Statistics | April 2016 | |
| Special Surveys of Agricultural Products | April 2016 | |
| Financial Accounts – Cash Flow | April 2016 | |
| Balance of Payments | June 2016 | |
| CAPTAC: Non-observed Economy-Employment Matrix | July 2016 | |
| CAPTAC: National Accounts Rebasing Process | July 2016 | |
| CAPTAC: Improvements Quarterly Construction Survey-Revision of Sample Frames | March 2017 | |
| CAPTAC: National Accounts Rebasing Project | June 2017 | |
| CAPTAC: Non-observed Economy-Employment Matrix | August 2017 | |
| CAPTAC: Balance of payments and IIP statistics | March 2018 | |
| CAPTAC: National Accounts | May, June, July, September, November 2018; March, May 2019 | |
| CAPTAC: Government Finance Statistics | May, July 2018, May 2019 | |
| CAPTAC: Classifications | October 2018 | |
| CAPTAC: Quarterly data compilation and OSDS | January 2019 |
Relations with Other International Financial Institutions
Inter-American Development Bank: https://www.iadb.org/en/countries/honduras/overview
World Bank: http://www.worldbank.org/en/country/honduras
Statistical Issues
(As of June 24, 2019)
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provided to the Fund are broadly adequate for surveillance and program monitoring purposes. However, monitoring will benefit from both better timing of data release and more comprehensive data coverage. Some issues that were flagged in the previous Article IV have not been fully addressed, including the lack of comprehensive data on the financial operations of public enterprises, enhancing reporting of government guarantees and fiscal contingent liabilities, and a valid and reliable methodology to estimate private capital flows. | |
| National Accounts: The Central Bank of Honduras (BCH) compiles national accounts estimates following the System of National Accounts 1993 (1993 SNA). The base year is 2000. The quarterly GDP data are consistent with the annual series. The BCH has developed a project to rebase the national accounts series to 2016, including the adoption of the main recommendations of the 2008 SNA, with support of CAPTAC-DR, planned to be concluded by 2021. Labor statistics: Honduras’ National Institute of Statistics (INE) conducts its household survey annually which includes labor market information. More frequent data on employment and wages are required to better facilitate short-term policy analysis. | |
| Price Statistics: The BCH prepares and publishes (since April 2000) the consumer price index (CPI), with reference period of December 1999. The selection of products included in the CPI basket and corresponding weights are based on the National Household Income and Expenditure Survey (NHIES) of 1998–99. A new NHIES for 2019 has been rolled out and is expected to be completed by end-2019. The BCH expanded the coverage of the producer price index and updated its base (to 2010) and classification, in the context of the last revision of the national accounts (base year 2000). The index, currently compiled for internal use, only includes goods for processing activities (maquila), trade and transport margins, which limits its use it in the compilation of national accounts at constant prices. | |
| Government Finance Statistics: The Ministry of Finance (SEFIN) compiles and disseminates government finance statistics (GFS) covering central administration, central government, general government, and nonfinancial public sector. The above-the-line data of these sectors are reported to WHD, along with below-the-line data for central administration and nonfinancial public sector, which are provided by the BCH. Currently, the SEFIN and the BCH are participating in the GFS data enhancement project for Central America, Panama, and Dominican Republic. Under this project, country participants will elaborate and publish comparable GFS across countries to support decision making, permit a comparative analysis of fiscal developments and facilitate the regional policy dialogue. The components of the projects are: (i) compilation and dissemination of high quality sub-annual and annual data using the GFSM 2014 framework, and (ii) work towards the gradual implementation of the Government Finance Statistics Manual 2014 (GFSM 2014) and the Public Sector Debt Statistics Guide (PSDSG). A mechanism is needed to systematically collect data on arrears and floating debt of public enterprises. | |
| Monetary and Financial Statistics: Monetary and financial statistics (MFS) are reported to STA on a regular monthly basis using the standardized report forms (SRFs) for the central bank, other depository corporations, and other financial corporations (OFCs). However, pension funds are excluded from the coverage of OFCs. The inclusion of pension funds, and cross-sectoral data consistency between MFS and other data sets are the major issues that should be addressed. | |
| Financial sector surveillance: The authorities report 11 out of 12 core financial soundness indicators and five of the encouraged set. | |
| External sector statistics: Honduras has achieved significant milestones in the context of the CAPTAC-DR’s Regional Harmonization Project of External Sector Statistics (ESS), which ended in December 2015. The BCH disseminates quarterly Balance of Payments and International Investment Position (IIP) statistics, and monthly the Data Template on International Reserves and Foreign Currency Liquidity. Honduras also participates in the Coordinated Direct Investment Survey (CDIS) and the Coordinated Portfolio Investment Survey (CPIS). Work in progress at the BCH aims at improving the coverage of nonfinancial private sector transactions and positions included in balance of payments and IIP statistics, ensuring consistency between external debt statistics and IIP statistics, and completing the migration to a BPM6 basis of recording and dissemination of ESS. | |
| II. Data Standards and Quality | |
| Honduras is an e-GDDS participant. In June 2016, it implemented the e-GDDS recommendations—including the launch of a National Summary Data Page to serve as a one-stop portal for essential macroeconomic and financial data. We encourage the authorities to take steps toward SDDS subscription. | Data ROSC was published on July 29, 2005. |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provided to the Fund are broadly adequate for surveillance and program monitoring purposes. However, monitoring will benefit from both better timing of data release and more comprehensive data coverage. Some issues that were flagged in the previous Article IV have not been fully addressed, including the lack of comprehensive data on the financial operations of public enterprises, enhancing reporting of government guarantees and fiscal contingent liabilities, and a valid and reliable methodology to estimate private capital flows. | |
| National Accounts: The Central Bank of Honduras (BCH) compiles national accounts estimates following the System of National Accounts 1993 (1993 SNA). The base year is 2000. The quarterly GDP data are consistent with the annual series. The BCH has developed a project to rebase the national accounts series to 2016, including the adoption of the main recommendations of the 2008 SNA, with support of CAPTAC-DR, planned to be concluded by 2021. Labor statistics: Honduras’ National Institute of Statistics (INE) conducts its household survey annually which includes labor market information. More frequent data on employment and wages are required to better facilitate short-term policy analysis. | |
| Price Statistics: The BCH prepares and publishes (since April 2000) the consumer price index (CPI), with reference period of December 1999. The selection of products included in the CPI basket and corresponding weights are based on the National Household Income and Expenditure Survey (NHIES) of 1998–99. A new NHIES for 2019 has been rolled out and is expected to be completed by end-2019. The BCH expanded the coverage of the producer price index and updated its base (to 2010) and classification, in the context of the last revision of the national accounts (base year 2000). The index, currently compiled for internal use, only includes goods for processing activities (maquila), trade and transport margins, which limits its use it in the compilation of national accounts at constant prices. | |
| Government Finance Statistics: The Ministry of Finance (SEFIN) compiles and disseminates government finance statistics (GFS) covering central administration, central government, general government, and nonfinancial public sector. The above-the-line data of these sectors are reported to WHD, along with below-the-line data for central administration and nonfinancial public sector, which are provided by the BCH. Currently, the SEFIN and the BCH are participating in the GFS data enhancement project for Central America, Panama, and Dominican Republic. Under this project, country participants will elaborate and publish comparable GFS across countries to support decision making, permit a comparative analysis of fiscal developments and facilitate the regional policy dialogue. The components of the projects are: (i) compilation and dissemination of high quality sub-annual and annual data using the GFSM 2014 framework, and (ii) work towards the gradual implementation of the Government Finance Statistics Manual 2014 (GFSM 2014) and the Public Sector Debt Statistics Guide (PSDSG). A mechanism is needed to systematically collect data on arrears and floating debt of public enterprises. | |
| Monetary and Financial Statistics: Monetary and financial statistics (MFS) are reported to STA on a regular monthly basis using the standardized report forms (SRFs) for the central bank, other depository corporations, and other financial corporations (OFCs). However, pension funds are excluded from the coverage of OFCs. The inclusion of pension funds, and cross-sectoral data consistency between MFS and other data sets are the major issues that should be addressed. | |
| Financial sector surveillance: The authorities report 11 out of 12 core financial soundness indicators and five of the encouraged set. | |
| External sector statistics: Honduras has achieved significant milestones in the context of the CAPTAC-DR’s Regional Harmonization Project of External Sector Statistics (ESS), which ended in December 2015. The BCH disseminates quarterly Balance of Payments and International Investment Position (IIP) statistics, and monthly the Data Template on International Reserves and Foreign Currency Liquidity. Honduras also participates in the Coordinated Direct Investment Survey (CDIS) and the Coordinated Portfolio Investment Survey (CPIS). Work in progress at the BCH aims at improving the coverage of nonfinancial private sector transactions and positions included in balance of payments and IIP statistics, ensuring consistency between external debt statistics and IIP statistics, and completing the migration to a BPM6 basis of recording and dissemination of ESS. | |
| II. Data Standards and Quality | |
| Honduras is an e-GDDS participant. In June 2016, it implemented the e-GDDS recommendations—including the launch of a National Summary Data Page to serve as a one-stop portal for essential macroeconomic and financial data. We encourage the authorities to take steps toward SDDS subscription. | Data ROSC was published on July 29, 2005. |
Table of Common Indicators Required for Surveillance
(As of May 3, 2019)
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Table of Common Indicators Required for Surveillance
(As of May 3, 2019)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | 03/05/19 | 03/05/19 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 03/05/19 | 03/05/19 | D | D | D |
| Reserve/Base Money | 31/03/19 | 09/04/19 | D | M | D |
| Broad Money | 31/03/19 | 09/04/19 | M | M | M |
| Central Bank Balance Sheet | 31/03/19 | 13/04/19 | D | M | D |
| Consolidated Balance Sheet of the Banking System | 28/02/19 | 30/04/19 | M | M | M |
| Interest Rates2 | 31/03/19 | 09/04/19 | W | M | M |
| Consumer Price Index | 30/04/19 | 03/05/19 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | 31/12/18 | 30/03/19 | Q | Q | Q |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | 31/12/18 | 30/03/19 | Q | Q | Q |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 31/12/18 | 30/03/19 | Q | Q | Q |
| External Current Account Balance | 31/12/18 | 09/03/19 | Q | Q | Q |
| Exports and Imports of Goods and Services | 31/12/18 | 09/03/19 | Q | Q | Q |
| GDP/GNP | 31/12/18 | 09/03/19 | Q | Q | Q |
| Gross External Debt | 28/02/18 | 30/04/19 | M | M | M |
| International Investment Position6 | 31/12/18 | 09/03/19 | Q | Q | Q |
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Table of Common Indicators Required for Surveillance
(As of May 3, 2019)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | 03/05/19 | 03/05/19 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 03/05/19 | 03/05/19 | D | D | D |
| Reserve/Base Money | 31/03/19 | 09/04/19 | D | M | D |
| Broad Money | 31/03/19 | 09/04/19 | M | M | M |
| Central Bank Balance Sheet | 31/03/19 | 13/04/19 | D | M | D |
| Consolidated Balance Sheet of the Banking System | 28/02/19 | 30/04/19 | M | M | M |
| Interest Rates2 | 31/03/19 | 09/04/19 | W | M | M |
| Consumer Price Index | 30/04/19 | 03/05/19 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | 31/12/18 | 30/03/19 | Q | Q | Q |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | 31/12/18 | 30/03/19 | Q | Q | Q |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 31/12/18 | 30/03/19 | Q | Q | Q |
| External Current Account Balance | 31/12/18 | 09/03/19 | Q | Q | Q |
| Exports and Imports of Goods and Services | 31/12/18 | 09/03/19 | Q | Q | Q |
| GDP/GNP | 31/12/18 | 09/03/19 | Q | Q | Q |
| Gross External Debt | 28/02/18 | 30/04/19 | M | M | M |
| International Investment Position6 | 31/12/18 | 09/03/19 | Q | Q | Q |
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
World Bank Board, July 6, 2000.
The Multilateral Debt Relief Initiative (MDRI) provides 100 percent debt relief to eligible member countries that are qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.
The base price is the outcome of the peg formula which takes into consideration: (1) the differential between the inflation rate and the inflation rates of trading partners, (2) changes in the nominal exchange rates of these partners’ currencies vis-à-vis the U.S. dollar, and (3) the reserve coverage ratio which defines the size of the interaction between (1) and (2) that is translated into the base price.