Honduras raised L19,679 million (approximately $746 million) in domestic bonds during the first six months of 2026, meeting 98% of its L20,000 million target. This marks a substantial increase in issuance, nearly sevenfold higher than the L2,947.6 million raised in the same period in 2024 and significantly more than the L9,653.6 million in 2025. Domestic bonds now constitute 49.91% of Honduras's total public debt, up from 47.12% at the close of 2021, and have become the government's second-largest and fastest-growing source of budget financing.
Finance Minister Emilio Hernández Hércules announced a further bond issue of up to L16,000 million (approximately $607 million), primarily dedicated to paying power generators, addressing accumulated debts in the energy sector. This move is directly linked to the state power company ENEE's substantial annual losses, estimated by the government itself at $600 million. Hernández clarified that while this bond issue is crucial, particularly for energy sector obligations, it alone will not resolve ENEE's financial woes, which are described as a "tremendous puzzle" requiring broader solutions.
The approved internal-debt limit for Honduras was increased from L27,599.6 million to L30,985.1 million in a reformulated budget. Although the announced L16,000 million issue could potentially exceed this revised ceiling, the minister frames it as specific to energy-sector obligations rather than general budget financing. Buyers of these domestic bonds include commercial and development banks, savings and loan associations, credit unions, insurance companies, and the state development bank. The state is currently paying interest rates between 9% and 12% on these bonds, with a ten-year bond recently yielding almost 12%. The International Monetary Fund released approximately $242 million to Honduras in late June, having granted a waiver due to the country missing a target related to ENEE's domestic debts.
