EU announces credits to Honduras as international cooperation flourishes
Multilateral organizations, friendly nations, and trade partners immediately signaled support for newly inaugurated constitutional president Nasry Asfura. The regional and international support projected hopes that his government will continue putting forward its plans for cooperation, investment attraction, and institutional strengthening.
Messages sent by officials to Honduras on inauguration day pointed to the continuation of foreign relations with renewed impetus towards trade, investments, and productive alliances. The wave of international support sent positive signals of continuity and intensified cooperation that can positively impact the Honduran economy and its positioning in Central America and abroad.
European Union Cooperation with Honduras
European Union Ambassador to Honduras Gonzalo Fournier announced during inauguration day events that European cooperation will strengthen this year with the immediate opening of financing operations.
“In the coming weeks, we will have the first mega-credits that Honduras signs with Europe since 2009.” Fournier made it clear that European Union cooperation with Honduras is taking center stage this year during a series of meetings with President Asfura as soon as he takes office.
Credits totaling somewhere between €369 million and €500 million are being structured to finance electricity transmission projects and investments aimed at eliminating logistical bottlenecks suffered by Honduras for years. These mega credits will help lower production costs while increasing reliability throughout the Honduran productive sector.
Fournier also announced that a total of €60 million will be destined for sustainability-linked finances, while another €6 million investment will focus on supporting Honduran entrepreneurs, including the micro, small, and medium-sized enterprises segment.
Political significance of credits to Honduras
The ambassador added that “what we are talking about with Honduras will make it the second country in Central America that receives the most financing from the European Union, only behind Panama.” Stressing that EU cooperation with Honduras is also signaling international confidence in Honduras’ institutions.
Trade Ties between Honduras and the European Union
Trade relations between Honduras and European Union nations will continue to be significant. “Europe is the destination of about 68% of Honduran coffee exports,” stated the European Union Ambassador, referring to one of Honduras’ principal exports.
Honduran coffee benefits more than 120,000 families spread throughout the Honduran countryside. European Union Ambassador Fournier also made sure to mention that Honduran coffee exports comply with European Union regulations prohibiting deforestation, allowing them to access the European market with a sustainability label.
Trade diversification talks ahead for Honduras and the EU
“We want it to be not just coffee, but other value-added products,” Fournier said listing examples such as animal and vegetable fats, processed agricultural goods, and textiles as products of interest. EU Ambassador Fournier said Honduras is ready to diversify exports and work towards less dependence on raw commodities.
Investment relations with the European Union
Commenting on investment trends, Ambassador Fournier said, “European investors are already here and have been for years.” He explained that 21% of foreign direct investment coming into Honduras comes from European companies.
European Union investment in Honduras stretches beyond purchasing goods from Honduran producers. Investors from EU countries are engaged in production, renewable energies, and services, providing much-needed jobs and know-how to help strengthen the Honduran economy. Infrastructure projects have also received European financing in years past.
SIECA presidency matters to European Union cooperation with Honduras
Europe congratulated Honduras on its pro tempore presidency of the Central American Integration System (Spanish acronym SIECA) and pledged cooperation in relevant areas. Ambassador Fournier said Europe will work alongside Honduras during its SIECA pro tempore presidency, strengthening customs integration projects, decreasing non-tariff barriers, and trade facilitation mechanisms.
Europe is coming to Honduras February 2-4, and Honduras is heading to EU next month
“I want to announce that the European Union Directorate-General for Trade will visit our country from February 2 to 4,” Ambassador Fournier confirmed. He also announced that Honduras has been invited to the European Union–Central America Investment Forum to be hosted in Panama next month.
“I know that the minister responsible for commerce will count on European investors.” European Union Ambassador Fournier finished speaking on the topic of future visits between Honduras and Europe, signaling continuous exchanges in the months to come.
Supportive Message Sent by US Officials
During the inauguration ceremonies, Asfura was also greeted by the Chargé d’Affaires of the US Embassy to Honduras, Colleen A. Hoey. She took the opportunity to deliver a strong message of support through embassy social media channels.
“Today is the beginning of a new chapter in the relationship between the United States and Honduras,” wrote Chargé Hoey. She went on to highlight security cooperation, economic opportunities, and strengthening bilateral relations as goals to work towards together.
Republican US Congresswoman María Elvira Salazar sent a congratulatory message saying that “today is a new dawn not just for Honduras, but for all of the Western Hemisphere.” She continued writing that she hopes Asfura will focus efforts on promoting democratic institutions while building a stronger bilateral alliance with the United States.
United Nations Sends Support
“United Nations agencies congratulate President Nasry Asfura Jiménez on his inauguration as President of Honduras,” began a joint statement from the United Nations signifying multilateral support for the president.
“The United Nations in Honduras stands ready to continue working with the Government and people of Honduras to advance its development priorities and improve the lives of all Hondurans.” UN Resident Coordinator Alejandro Álvarez emphasized continued UN support for Honduras.