Honduras First Programmatic Financial Sector Development Policy Credit

Abstract*

The Programmatic Financial Sector Development Policy Credit Project is the first operation of its kind, to be implemented in two phases. The first phase will support financial sector institutional development, through reforms in the following five areas: a) strategy for the management of systemic risks, b) legal and regulatory framework, c) anti-money laundering, and prevention of terrorism financing, d) strengthening of supervision, and control of... Show More

Development Objective

The development goal of this operation is to support the Honduran Government?s efforts to consolidate the financial sector, so as to ensure its positive contribution to long term growth and poverty reduction. IDA support for the Government?s financial sector reform program would be a programmatic development policy operation in two phases. The first phase?the proposed Credit?would be executed over a period of two years. The proposed Credit would support the institutional development of the financial sector through reforms in the following five areas: (i) Strategy for management of systemic risks (ii) Strengthening of legal and regulatory framework (iii) Anti money laundering and financing of terrorism prevention system (iv) Strengthening of supervision and control of systemic risks (v) Strengthening of the payments system. A second development policy credit would support an orderly consolidation of the financial system.

Key Details

Project Details

Project ID
P083311
Status
Closed
Team Leader
Juan Buchenau
Borrower 2
N/A

Country
Honduras
Disclosure Date
February 22, 2005
Approval Date
(as of board presentation)
February 22, 2005
Effective Date
August 16, 2005

Total Project Cost 1
US$ 25.00 million
Implementing Agency
N/A
Region
Latin America and Caribbean
Fiscal Year 3
2005

Commitment Amount
US$ 25.00 million
Environmental Category
N/A
Environmental and Social Risk
Not Applicable
Closing Date
May 30, 2009

Last Stage Reached
BANK APPROVED
Last Update Date
January 15, 2013

Associated Projects
P112023

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Economic Policy

FY17 - Fiscal Policy6%
- FY17 - Fiscal sustainability2%
- FY17 - Public Expenditure Policy2%
- FY17 - Tax policy2%
FY17 - Macro-financial policies6%
- FY17 - External Finance2%
- FY17 - Macroeconomic Resilience2%
- FY17 - Monetary and Credit Policies2%

FY17 - Finance

FY17 - Financial Infrastructure and Access14%
- FY17 - Credit Infrastructure14%
FY17 - Financial Stability30%
- FY17 - Financial Sector Integrity15%
- FY17 - Financial Sector oversight and policy/banking regulation & restructuring15%

FY17 - Private Sector Development

FY17 - Business Enabling Environment43%
- FY17 - Investment and Business Climate14%
- FY17 - Regulation and Competition Policy28%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
IDA Credit	25.00

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	N/A
IDA Commitment	25.00
IBRD + IDA Commitment	25.00

Lending Instrument
Grant Amount	N/A
Total Project Cost**	25.00

Summary Status of World Bank Financing (US$ Millions) as of July 31, 2025

No data available.

Detailed Financial Activity as of July 31, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Jun 15, 2023	IDA-40360	Loan Repay	24,674.89
Jun 15, 2023	IDA-40360	Int Charges	20,269.69
Jun 15, 2023	IDA-40360	Int Charges	20,269.69
Aug 15, 2023	IDA-45000	Loan Repay	413,028.50
Aug 15, 2023	IDA-45000	Int Charges	15,488.57
Aug 15, 2023	IDA-45000	Int Charges	15,488.57
Aug 15, 2023	IDA-45000	Int Charges	2,112.73
Aug 15, 2023	IDA-45000	Int Charges	2,112.73
Feb 15, 2023	IDA-45000	Loan Repay	410,873.66
Feb 15, 2023	IDA-45000	Int Charges	14,981.04
Feb 15, 2023	IDA-45000	Int Charges	14,981.04
Feb 15, 2023	IDA-45000	Loan Repay	3,714.14
Aug 15, 2024	IDA-45000	Loan Repay	409,197.97
Aug 15, 2024	IDA-45000	Loan Repay	5,758.72
Aug 15, 2024	IDA-45000	Int Charges	5,759.38
Aug 15, 2024	IDA-45000	Int Charges	5,759.38
Feb 22, 2005	IDA-40360	Loan Commitment	25,000,000.00
Aug 7, 2008	IDA-45000	Loan Commitment	10,000,000.00
Jun 15, 2024	IDA-40360	Int Charges	6,960.88
Jun 15, 2024	IDA-40360	Int Charges	6,960.88
Jun 15, 2024	IDA-40360	Loan Repay	1,067,272.20
Jun 15, 2024	IDA-40360	Loan Repay	12,842.22
Jun 15, 2024	IDA-40360	Int Charges	12,006.81
Jun 15, 2024	IDA-40360	Int Charges	12,006.81
Feb 15, 2024	IDA-45000	Loan Repay	736.92
Feb 15, 2024	IDA-45000	Loan Repay	409,337.28
Feb 15, 2024	IDA-45000	Int Charges	13,840.00
Feb 15, 2024	IDA-45000	Int Charges	13,840.00
Aug 15, 2020	IDA-45000	Loan Repay	431,533.34
Aug 15, 2020	IDA-45000	Int Charges	16,253.61
Aug 15, 2020	IDA-45000	Int Charges	16,253.61
Aug 15, 2020	IDA-45000	Loan Repay	0.01
Aug 15, 2020	IDA-45000	Int Charges	-0.01
Aug 15, 2020	IDA-45000	Int Charges	-0.01
Jun 15, 2020	IDA-40360	Int Charges	31,087.67
Jun 15, 2020	IDA-40360	Int Charges	31,087.67
Jun 15, 2020	IDA-40360	Int Charges	11,229.41
Jun 15, 2020	IDA-40360	Int Charges	11,229.41
Jun 15, 2020	IDA-40360	Loan Repay	1,117,273.50
Jun 15, 2021	IDA-40360	Int Charges	22,381.83
Dec 15, 2022	IDA-40360	Loan Repay	28,640.02
Dec 15, 2022	IDA-40360	Loan Repay	1,024,711.80
Dec 15, 2021	IDA-40360	Int Charges	8,716.85
Dec 15, 2021	IDA-40360	Int Charges	8,716.85
Dec 15, 2021	IDA-40360	Loan Repay	1,131,197.40
Jun 15, 2023	IDA-40360	Int Charges	16,215.75
Jun 15, 2023	IDA-40360	Int Charges	16,215.75
Dec 15, 2023	IDA-40360	Loan Repay	1,055,889.50
Dec 15, 2023	IDA-40360	Loan Repay	17,082.29
Jun 15, 2023	IDA-40360	Loan Repay	1,081,050.20
Jun 15, 2021	IDA-40360	Int Charges	22,381.83
Jun 15, 2021	IDA-40360	Loan Repay	1,165,727.80
Jun 15, 2021	IDA-40360	Int Charges	25,988.89
Jun 15, 2021	IDA-40360	Int Charges	25,988.89
Feb 15, 2021	IDA-45000	Int Charges	10,186.10
Feb 15, 2021	IDA-45000	Int Charges	10,186.10
Feb 15, 2021	IDA-45000	Loan Repay	446,632.50
Feb 15, 2021	IDA-45000	Int Charges	24,196.49
Feb 15, 2021	IDA-45000	Int Charges	24,196.49
Dec 15, 2020	IDA-40360	Int Charges	11,269.58
Dec 15, 2020	IDA-40360	Int Charges	11,269.58
Dec 15, 2020	IDA-40360	Loan Repay	1,164,763.80
Dec 15, 2020	IDA-40360	Int Charges	16,947.46
Dec 15, 2020	IDA-40360	Int Charges	16,947.46
Jun 15, 2022	IDA-40360	Loan Repay	12,847.32
Jun 15, 2022	IDA-40360	Loan Repay	1,065,926.90
Jun 15, 2022	IDA-40360	Int Charges	24,272.42
Jun 15, 2022	IDA-40360	Int Charges	24,272.42
Aug 15, 2021	IDA-45000	Int Charges	23,116.20
Aug 15, 2021	IDA-45000	Int Charges	23,116.20
Aug 15, 2021	IDA-45000	Int Charges	913.47
Aug 15, 2021	IDA-45000	Int Charges	913.47
Aug 15, 2021	IDA-45000	Loan Repay	440,308.50
Dec 15, 2021	IDA-40360	Int Charges	29,693.93
Dec 15, 2021	IDA-40360	Int Charges	29,693.93
Aug 15, 2022	IDA-45000	Int Charges	1,317.70
Aug 15, 2022	IDA-45000	Int Charges	1,317.70
Aug 15, 2022	IDA-45000	Loan Repay	409,320.90
Aug 15, 2022	IDA-45000	Int Charges	18,419.44
Aug 15, 2022	IDA-45000	Int Charges	18,419.44
Feb 15, 2022	IDA-45000	Loan Repay	428,107.80
Feb 15, 2022	IDA-45000	Loan Repay	6,152.60
Feb 15, 2022	IDA-45000	Int Charges	19,772.21
Feb 15, 2022	IDA-45000	Int Charges	19,772.21
Jun 15, 2018	IDA-40360	Int Charges	60,004.90
Jun 15, 2018	IDA-40360	Int Charges	60,004.90
Jun 15, 2018	IDA-40360	Loan Repay	617.86
Feb 15, 2018	IDA-45000	Int Charges	610.81
Feb 15, 2018	IDA-45000	Int Charges	610.81
Feb 15, 2018	IDA-45000	Int Charges	32,858.25
Feb 15, 2018	IDA-45000	Int Charges	32,858.25
Feb 15, 2019	IDA-45000	Loan Repay	9,241.00
Feb 15, 2019	IDA-45000	Loan Repay	420,595.70
Feb 15, 2019	IDA-45000	Int Charges	28,108.63
Feb 15, 2019	IDA-45000	Int Charges	28,108.63
Dec 15, 2018	IDA-40360	Loan Repay	36,974.00
Dec 15, 2018	IDA-40360	Int Charges	54,452.87
Dec 15, 2018	IDA-40360	Loan Repay	1,080,007.90
Dec 15, 2018	IDA-40360	Int Charges	54,452.87
Jun 15, 2019	IDA-40360	Int Charges	50,422.38
Jun 15, 2019	IDA-40360	Int Charges	50,422.38
Jun 15, 2019	IDA-40360	Loan Repay	16,021.33
Jun 15, 2019	IDA-40360	Loan Repay	1,104,476.00
Aug 15, 2019	IDA-45000	Int Charges	2,495.12
Aug 15, 2019	IDA-45000	Int Charges	2,495.12
Aug 15, 2019	IDA-45000	Loan Repay	426,060.90
Aug 15, 2019	IDA-45000	Int Charges	28,759.11
Aug 15, 2019	IDA-45000	Int Charges	28,759.11
Feb 15, 2020	IDA-45000	Loan Repay	2,974.70
Feb 15, 2020	IDA-45000	Loan Repay	420,953.40
Dec 15, 2019	IDA-40360	Loan Repay	6,077.51
Dec 15, 2019	IDA-40360	Loan Repay	1,115,035.40
Dec 15, 2019	IDA-40360	Int Charges	34,977.91
Dec 15, 2019	IDA-40360	Int Charges	34,977.91
Feb 15, 2020	IDA-45000	Int Charges	27,025.42
Feb 15, 2020	IDA-45000	Int Charges	27,025.42
Aug 15, 2020	IDA-45000	Loan Repay	5,467.46
Jun 15, 2016	IDA-40360	Int Charges	76,348.43
Feb 15, 2016	IDA-45000	Int Charges	32,388.88
Feb 15, 2016	IDA-45000	Int Charges	32,388.88
Feb 15, 2016	IDA-45000	Int Charges	17.66
Feb 15, 2016	IDA-45000	Int Charges	17.66
Feb 15, 2017	IDA-45000	Int Charges	249.49
Feb 15, 2017	IDA-45000	Int Charges	249.49
Feb 15, 2017	IDA-45000	Int Charges	30,900.38
Feb 15, 2017	IDA-45000	Int Charges	30,900.38
Dec 16, 2016	IDA-40360	Int Charges	511.06
Dec 16, 2016	IDA-40360	Int Charges	511.06
Dec 16, 2016	IDA-40360	Loan Repay	1,085,821.20
Dec 16, 2016	IDA-40360	Int Charges	69,221.10
Dec 16, 2016	IDA-40360	Int Charges	69,221.10
Aug 15, 2016	IDA-45000	Int Charges	276.74
Aug 15, 2016	IDA-45000	Int Charges	276.74
Aug 15, 2016	IDA-45000	Int Charges	32,447.00
Aug 15, 2016	IDA-45000	Int Charges	32,447.00
Jun 15, 2017	IDA-40360	Loan Repay	1,086,721.90
Jun 15, 2017	IDA-40360	Loan Repay	32,860.16
Jun 15, 2017	IDA-40360	Int Charges	46,902.98
Jun 15, 2017	IDA-40360	Int Charges	46,902.98
Jun 15, 2017	IDA-40360	Int Charges	23.33
Jun 15, 2017	IDA-40360	Int Charges	23.33
Dec 15, 2017	IDA-40360	Int Charges	20,739.21
Dec 15, 2017	IDA-40360	Loan Repay	1,145,388.60
Dec 15, 2017	IDA-40360	Int Charges	64,428.11
Dec 15, 2017	IDA-40360	Int Charges	64,428.11
Dec 15, 2017	IDA-40360	Int Charges	20,739.21
Aug 15, 2017	IDA-45000	Int Charges	32,131.76
Aug 15, 2017	IDA-45000	Int Charges	32,131.76
Aug 15, 2017	IDA-45000	Int Charges	245.56
Aug 15, 2017	IDA-45000	Int Charges	245.56
Aug 15, 2018	IDA-45000	Int Charges	999.62
Aug 15, 2018	IDA-45000	Int Charges	999.62
Aug 15, 2018	IDA-45000	Loan Repay	428,847.80
Aug 15, 2018	IDA-45000	Int Charges	32,163.59
Aug 15, 2018	IDA-45000	Int Charges	32,163.59
Jun 15, 2018	IDA-40360	Loan Repay	1,142,332.60
Feb 15, 2014	IDA-45000	Int Charges	145.76
Feb 15, 2014	IDA-45000	Int Charges	145.76
Feb 15, 2014	IDA-45000	Int Charges	35,609.69
Feb 15, 2014	IDA-45000	Int Charges	35,609.69
Dec 17, 2013	IDA-40360	Int Charges	1,055.46
Dec 17, 2013	IDA-40360	Int Charges	1,055.46
Dec 17, 2013	IDA-40360	Int Charges	92,941.98
Dec 17, 2013	IDA-40360	Int Charges	92,941.98
Aug 15, 2013	IDA-45000	Int Charges	244.12
Aug 15, 2013	IDA-45000	Int Charges	244.12
Aug 15, 2013	IDA-45000	Int Charges	35,052.87
Aug 15, 2013	IDA-45000	Int Charges	35,052.87
Aug 15, 2015	IDA-45000	Int Charges	1,066.93
Aug 15, 2015	IDA-45000	Int Charges	1,066.93
Aug 15, 2015	IDA-45000	Int Charges	31,567.70
Aug 15, 2015	IDA-45000	Int Charges	31,567.70
Jun 15, 2015	IDA-40360	Loan Repay	1,394.22
Jun 15, 2015	IDA-40360	Loan Repay	1,136,169.80
Jun 15, 2015	IDA-40360	Int Charges	57,636.15
Jun 15, 2015	IDA-40360	Int Charges	57,636.15
Aug 15, 2014	IDA-45000	Int Charges	143.68
Aug 15, 2014	IDA-45000	Int Charges	143.68
Aug 15, 2014	IDA-45000	Int Charges	35,550.41
Aug 15, 2014	IDA-45000	Int Charges	35,550.41
Dec 15, 2014	IDA-40360	Int Charges	520.93
Dec 15, 2014	IDA-40360	Int Charges	520.93
Feb 15, 2015	IDA-45000	Int Charges	244.41
Feb 15, 2015	IDA-45000	Int Charges	244.41
Feb 15, 2015	IDA-45000	Int Charges	32,665.96
Feb 15, 2015	IDA-45000	Int Charges	32,665.96
Jun 15, 2014	IDA-40360	Int Charges	93,525.84
Jun 15, 2014	IDA-40360	Int Charges	93,525.84
Dec 15, 2014	IDA-40360	Int Charges	88,258.52
Dec 15, 2014	IDA-40360	Int Charges	88,258.52
Jun 15, 2014	IDA-40360	Int Charges	602.57
Jun 15, 2014	IDA-40360	Int Charges	602.57
Dec 15, 2015	IDA-40360	Int Charges	27,472.81
Dec 15, 2015	IDA-40360	Int Charges	27,472.81
Dec 15, 2015	IDA-40360	Loan Repay	1,129,002.20
Dec 15, 2015	IDA-40360	Int Charges	80,441.41
Dec 15, 2015	IDA-40360	Int Charges	80,441.41
Jun 15, 2016	IDA-40360	Loan Repay	21,378.02
Jun 15, 2016	IDA-40360	Loan Repay	1,117,652.10
Jun 15, 2016	IDA-40360	Int Charges	76,348.43

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Program Management	Satisfactory	2008-12-08
Progress towards achievement of PDO	Satisfactory	2008-12-08
Monitoring and Evaluation	Satisfactory	2008-12-08
Overall Implementation Progress (IP)	Moderately Satisfactory	2008-12-08

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 04-30-2010
Outcomes	Moderately Satisfactory
Risk to Development Outcome	Modest
Bank Performance	Substantial
Borrower Performance	Moderately Satisfactory
Government Performance	Moderately Satisfactory
Implementing Agency	Substantial

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW: 09-01-2010	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Moderately Unsatisfactory	N/a
Risk To Development Outcome	Moderate	N/a
Bank Performance	Satisfactory	N/a
Borrower Performance	Moderately Unsatisfactory	N/a
Government Performance	Moderately Unsatisfactory	N/a
Implementing Agency	Moderately Unsatisfactory	N/a
Icr Quality	Satisfactory	N/a
M&e Quality	Modest	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

The consolidation strategy agreed upon between the Government of Honduras and private financial institutions has been implemented.	Value	none	done	The consolidation strategy agreed upon between the
	Date	February 22, 2005	March 28, 2008	December 29, 2006
	Comment

Honduras maintains status of FATF cooperating country, and complies with FATF 40+8 recommendations.	Value	none	done	Honduras maintains status of FATF cooperating coun
	Date	February 22, 2005	March 28, 2008	December 29, 2006
	Comment

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

The consolidation strategy agreed upon between the Government of Honduras and private financial institutions has been implemented.	Value	none	done	The consolidation strategy agreed upon between the
	Date	February 22, 2005	March 28, 2008	June 30, 2006
	Comment

All banks have risk management systems according to CNBS norms Value none done All banks have risk management systems according
Date February 22, 2005 March 28, 2008 June 30, 2006
Comment

Adverse events that have occurred in the financial system have been resolved within the framework of the new Financial System Law	Value	none	done	Adverse events that have occurred in the financial
	Date	February 22, 2005	March 28, 2008	June 30, 2006
	Comment

Banks are in compliance with portfolio ratings and provisioning norms Value none done Banks are in compliance with portfolio ratings and
Date February 22, 2005 March 28, 2008 June 30, 2006
Comment

Congress has approved a new legal framework to improve the following (i) bankruptcy and corporate reorganization (ii) creditor rights (iii) corporate governance of non-financial business entities	Value	none	none	Congress has approved a new legal framework to imp
	Date	February 22, 2005	April 1, 2005	June 30, 2006
	Comment

Honduras maintains status of FATF cooperating country, and complies with FATF 40+8 recommendations.	Value	none	done	Honduras maintains status of FATF cooperating coun
	Date	February 22, 2005	March 28, 2008	June 30, 2006
	Comment

CNBS is carrying out consolidated supervision of all the financial groups that operate in the country, and is evaluating and controlling the risks of these groups	Value	none	none	CNBS is carrying out consolidated supervision of a
	Date	February 22, 2005	April 1, 2005	June 30, 2006
	Comment

Payments between members of the system, including checks and payments mechanisms contemplated under the LBTR system, are processed in less than 48 hours	Value	none	done	Payments between members of the system, including
	Date	February 22, 2005	March 28, 2008	June 30, 2006
	Comment