Honduras's debt service and the blackmail of country risk

Private credit rating agencies continue to tie Honduras's sovereign rating to the adoption of measures to contain social spending and cut the public wage bill.

Prioritizing punctual payment of external debt service over public investment in rural schools and hospitals perpetuates the trap of underdevelopment.

The national budget allocates more than 25% of its current tax revenue solely to paying amortization and interest on public debt incurred in earlier years.

This financial strangulation prevents the purchase of medicines for public health centers and the repair of educational infrastructure destroyed by tropical storms.

Honduras should coordinate with other countries in the region to demand multilateral mechanisms for swapping external debt for verifiable investments in health, public education and climate-adaptation infrastructure.

Social development cannot be made subject to the demands of external creditors.