Announcement of Honduras Pays Arrears on World Bank Loans on June 29, 1990

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 NEWS RELEASE NO. 90/F63 Contact: Sheldon Rappaport (202) 458-1869 HONDURAS PAYS ARREARS ON WORLD BANK LOANS WASHINGTON, June 29, 1990 -- The World Bank announced that Honduras has fully cleared the arrears on its World Bank loans and IDA credits with a payment yesterday of $152.6 million. Barber B. Conable, President of the World Bank, lauded Honduras for its resolve in implementing an effective adjustment program and commended the efforts of the bilateral donors that have supported this program. Payment of the overdue amount permits the resumption of new lending and of disbursements on previously approved loans. About one-half of the amount overdue was for loan charges and the rest was for principal. Loans to Honduras constitute less than three-fifths of one percent of the Bank's loan portfolio. Honduras had been in nonaccrual status since April 1989. It is the second of nine countries which have been in nonaccrual status to restore full servicing of its debt. Last week Guyana also did so. -0-