The Inter-American Development Bank is backing Honduras’ fiscal reform and effort to improve financial service access, particularly for small and medium-sized enterprises.
IDB is offering USD45.8 million to help improve the tax system and bolster state utility revenues in the Central American nation. The financing, which will be disbursed in two tranches, will help to boost tax collection and efficiency.
The same initiative was assured of USD74.7 million in financial aid from the World Bank.
Another USD40 million in IDB financing will be made available to Honduras to increase access to financial services there. The project aims to help maintain the stability of financial intermediaries, enhance the transparency of pricing information, contracts and services, and increase access to financing of small and medium-sized enterprises and other vulnerable groups.