The World Bank has decided to restore development aid to Honduras, after almost eight months of suspension. A planned loan of $270 million and an additional $130 million in new credit will be provided, following the inauguration of the new president Porfirio Lobo ,despite controversy over his election. In early March, the IMF recognised the new administration, but without indicating how the decision had been made. Honduras is still suspended from the Organization of American States, a regional multilateral body. Regional powers Brazil, Mexico, Ecuador, and Chile are among the many Latin American countries refusing to recognise the Lobo administration.
Renewed calls for a substantial SDR allocation raise urgency of reforming the inequitable global reserve ‘non-system’.
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The Bretton Woods Project is a UK-based NGO that challenges the World Bank and IMF and promotes alternative approaches. We serve as an information provider, watchdog, networker and advocate. Our flagship publications are the Bretton Woods Observer, a quarterly critical review of developments at the World Bank and IMF, the Dispatch, a biannual analysis of the World Bank and IMF Spring and Annual Meetings, and the NewsLens, a bi-weekly roundup of key news and critical viewpoints published about the World Bank and IMF.
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