The Freedom and Refoundation Party (LIBRE) Coordinator and former Honduras' President Manuel Zelaya published a report on the social and economic situation in the country, which highlights the high levels of indebtedness to foreign institutions and the prevailing corruption.
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Noting a three-year period of sustained output decline, the report pointed out that Gross Domestic Product (GDP) experienced a sharp drop-off by about 10 percent in 2020.
Zelaya decried that the public debt increased from US$3.2 billion in 2009 to US$16 billion in 2020 while President Juan Hernandez allocated over 40 percent of tax revenues to pay foreign debt creditors.
"This accelerated indebtedness, which is suffocating the economy and increasing the fiscal deficit, cannot be sustained without falling into the vicious circle of further increasing debt to pay off debt," the LIBRE report warned.
Zelaya condemned current Hernandez for covering up the increase in the fiscal deficit with more debt and sovereign bonds, a policy which was decided together with the International Monetary Fund (IMF).
The report showed a complex social outlook amid the pandemic. As of Monday morning, Honduras had reported 123,369 COVID-19 cases and 3,180 deaths.
"We closed the year 2020 with a higher overall cost of living than the previous year, and no one doubts that living conditions will be more difficult in this new year," Zelaya said.