Since 2014—supported by a Fund program that expired in December 2017—Honduras has reduced macroeconomic imbalances, institutionalized fiscal prudence, and laid the groundwork for a modern monetary policy framework. The authorities are committed to maintain prudent policies and to build on previous achievements to make progress in solving long-standing issues. In this context, they have requested a new Fund program—to be treated as precautionary—as an anchor to support their economic and institutional reforms, which aim at increasing the quality of fiscal policy and improving governance and the business environment.
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