Honduran state telco receives authorization to take on debt

Honduran state telco Hondutel received congressional approval to borrow 300mn lempiras (US$11.9mn) from private parties to pay for a voluntary retirement plan, according to local press.

Hondutel wants to persuade 500-600 workers to retire early.

However, sources told BNamericas previously that half the workforce, about 1,000 employees, would have to leave to make operations efficient.

CEO Carlos Orbin was reported as saying that negotiations with banks regarding credit are underway. He also said the company will receive next year about 600mn lempiras from the telecoms technology investment fund.

However, it is not clear the funds will solve the company’s crisis, which is already indebted and has to satisfy labor demands contracted over 10 years ago.

As of June 30, Hondutel's losses totaled 229mn lempiras, up 56% year-on-year. And in the last two years, Hondutel has lost some 800,000 lines due to the pandemic and rain damage.