Economic support fund (ESF)

The program consists of a $5 million cash grant conditioned on the acceleration of reforms in three sectors: agriculture; finance; and trade and investment. Program dollars will finance imports of U.S. agricultural inputs, capital and intermediate goods, spare parts, and petroleum products for use by the private sector. GOH local currency counterpart will be used for, in order of priority, USAID/GOH bilateral projects; USAID Trust Fund needs; other donor, GOH, and PVO projects; or general sector support. While continuing to promote adherence to the package of reforms already in place, the 1993 program adds a few new reforms, including: (1) adoption of a new banking system law; and (2) additional progress on privatization, including the privatization of at least three more entities after 9/93, and continued progress towards privatization of HONDUTEL, the parastatal telephone utility. Other areas where USAID/H wants the GOH to consolidate and maintain reform progress include: (1) enforcement of trade reform; (2) implementation of the Agricultural Modernization Law; (3) liberalized pricing and restraint of government intervention in the agricultural sector; and (4) implementation of the GOH"s economic stabilization program.