Honduras, FY 1990 economic support fund

The program will provide fast-disbursing foreign exchange needed for private sector imports of U.S. raw materials, spare parts, intermediate and capital goods, and for non-military debt service requirements to the U.S. Government and international institutions. Petroleum and its derivatives may also be purchased with program funds. The Government of Honduras (GOH) agrees to contribute local currency in an amount equivalent to program funds for mutually agreed upon development objectives, including both private and public sector assistance. Disbursements will be conditioned by the GOH"s progress in implementing the 1990 Economic Program specified in its request for Economic Support Fund support. This program is designed to lower the fiscal deficit, adjust the exchange rate, effect major tariff reform, accelerate and expand the privatization process, and provide an environment for expanding exports and private investment.