Porfirio Lobo takes office as Honduran President

By Leonel Espinoza

TEGUCIGALPA, Honduras - Honduran President Porfirio Lobo faces three major challenges when he takes office on Jan. 27: bring closure to the political crisis that divided the country; re-establish international relationships; and solve the nation's financial crisis.

Lobo first must find a solution to unite a nation that was split over the departure of Manuel Zelaya, the former president who was removed from office on June 28 and will be sent to the Dominican Republic. Lobo also must meet with all of society's sectors to form a vision for the country, one that caters to "the immediate situation of the population and satisfies its basic needs," said Germán Leitzelar, elected deputy leader of the Partido de Innovación y Unidad Social Demócrata [Innovation and Unity Party-Social Democratic].

But when it comes to Honduras' economic situation, the challenge for Lobo is even bigger, according to economist Jairo Raudales. The Central American country has an external debt of US$2.1 billion (16% of GDP), a domestic debt that equals 20% of the national budget, a treasury shortfall of 4.5% and an unstable currency.

Raudales said it is integral to regain the trust of all sectors. Once Honduras has cohesion, it will be able to discuss with cooperating countries and multilateral organizations how to improve its financial situation.

"[Lobo] must have a country with no internal conflicts," Raudales said.

The social forum for the external debt and development of Honduras [Foro Social para la Deuda Externa y Desarrollo de Honduras] (FOSDEH) pointed out that Lobo should take urgent measures to recover public finances by improving tax collection and reducing overall expenses.

The resources should fund a public investment plan that hinges on improving the unemployment rate. If the country strengthens its infrastructure and shows the world it has moved forward from its political turmoil, it will spur business leaders to invest in their country, according to Raf Flores, sub-director of FOSDEH.

María Antonieta Guillén de Bográn, a representative of the Honduran government, said that if the country is to experience an economic boom, it must create a fiscal pact "in which everyone pays taxes and the government uses the money not only honestly, but also appropriately to solve primary concerns."

Juliette Handal, the coordinator of Coalición Patriótica de Solidaridad, said Lobo already took the first step toward reconciliation by granting Zelaya safe passage to the Dominican Republic.

"[Lobo] is trying to fix the situation so the world recognizes his government and the investment that has been suspended revives," Handal said.

Celín Discua, the nationalist deputy, said that another important step is for Lobo to follow through on his plan to provide amnesty to those involved in Zelaya's removal from office, "though it may be misunderstood by some people."

Source: Infosurhoy.com-26/01/2010

Back to News

<< back to Company News