IMF gives $150 million to Honduras
Wed, 02 Sep 2009 02:20:54 GMT
The de facto government of Honduras has received $150 million from the International Monetary Fund even though President Manuel Zelaya was ousted in a coup in June.
The Special Drawing Rights from the Washington-based lending agency will be used to boost its dollar reserves, Honduras' central bank said Tuesday. It will receive an additional $14 million in the next few weeks, it added.
In April, the IMF agreed to issue its member countries $250 billion in Special Drawing Rights (SDR), a mechanism to improve liquidity by printing new money to counteract the effects of the global economic crisis. Mexico and Nicaragua received similar issues last week.
Washington is expected to make a decision soon on whether to declare the ouster of Honduran President Manuel Zelaya a military coup.
The move would cut off tens of millions of dollars of aid to Honduras as the US bars aid to governments whose head of government is deposed by military coup or decree.
The United States has already suspended about $18 million in aid to the Central American nation.
Meanwhile, the State Department said US Secretary of State Hillary Clinton plans to meet Zelaya on Thursday.
AGB/HGL