Xiomara Castro’s government says Honduras will meet its debt obligations in a timely manner

The new government of the president of Honduras, Xiomara Castrodoes not plan to restructure the country’s large debt burden and is in a position to meet its payments on schedule, said Pedro Barquero, Minister of Economic Development.

The left-wing leader promised in her inaugural address on Thursday to solve the debt problems of the impoverished Central American nation, but warned that it would be “impossible” to meet payment deadlines.

However, the official said on Friday that the administration could meet its obligations. “We do not want to use or restructure or re-profile. What we are going to do is better manage our burdens,” he said in a telephone interview.

“We have spoken to the international credit organizations and it is clear to everyone that the obligations will be paid,” he added.

Honduras is facing a public debt of about $ 15.5 billion, equivalent to nearly 60% of its gross domestic product, a problem that Castro regularly highlighted before its big win in November.

About $ 7,300 million corresponds to external debt, while $ 8,200 million belongs to internal debt.

“The country is not in default,” Barquero added. “We are going to make sure that all the government’s obligations are paid. We are going to pay everything, absolutely everything, including the mortgages.”