IDB Extends Credit to Honduras

The IDB has approved a $50m credit line for Honduras to revamp the road that connects capital city Tegucigalpa with Puerto Castilla, improving freight and passenger transportation conditions. The road is known as the agricultural corridor. The credit line consists of a $35m million tranche for a 30-year term, with a 5.5-year grace period, and carries a variable interest rate. The remaining $15m is for a 40-year term with a 40-year grace period and a 0.25% interest rate. The program is expected to cost $77m, of which the OPEC fund for International Development will provide $25m. The Honduran government’s $2m contribution will come from local counterpart funding.