CABEI makes first disbursement of US$50 million to mitigate the rising cost of fuel and electricity in Honduras

Cabei release

Tegucigalpa, November 25^th, 2022.- In recognition of the efforts made by Honduran authorities in the application of three mechanisms to mitigate the rise in fuel and electricity prices and as part of the loan approved in June under its " Temporary Fuel Crisis Support Program," the Central American Bank for Economic Integration (CABEI) made the first disbursement to the Republic of Honduras in the amount of US$50 million.

This first disbursement of US$50 million corresponds to the reimbursement to the government of US$44.14 million for the reduction of the tax on super, regular and diesel gasoline, US$3.22 million for the additional subsidy of 50% of the increase in the price of diesel, and US$2.64 million for the subsidy to customers with electricity consumption equal to or less than 150 kwh.

"As CABEI, we have responded swiftly to the request of our founding member country Honduras and with this program we are contributing to the implementation of measures that benefit the entire population and translate into opportunities for development and social wellbeing," said CABEI Executive President, Dr. Dante Mossi.

The total amount of financing approved is US$200.0 million to support economic management in the face of rising fuel costs in order to lessen the impact on inflation control, on the economy of end consumers, and to mitigate increases in the transportation sector.

The Temporary Fuel Crisis Support Program, with regional coverage, is framed within the sustainable competitiveness axis of the CABEI 2020-2024 Institutional Strategy and aims to promote the strengthening of economic and commercial factors to advance sustainable development.