Tegucigalpa – Honduras' public external debt reached $10.2192 billion in January 2025, representing 25.3% of the country's Gross Domestic Product (GDP), the Central Bank of Honduras (BCH) reported on Monday.

The public debt experienced a significant increase of $887.6 million, rising from $9.3316 billion in January 2024 to $10.2192 billion in the first month of 2025, according to the monetary authority's report.

Compared to the December 2024 balance, the public external debt decreased by $22.8 million. This reduction was due to a net amortization of $17.5 million, where capital payments of $21 million exceeded received disbursements of $3.5 million. This was further offset by a favorable exchange rate variation that reduced the balance by $5.3 million.

The general government holds 91.2% ($9.3192 billion) of the debt, followed by the monetary authority with 7.4% ($759.1 million), non-financial public enterprises with 1.3% ($126 million), and public financial institutions with 0.1% ($14.9 million), the state issuer detailed.

By creditor, 69.4% of the public debt ($7.0882 billion) was contracted with multilateral organizations, 20.2% ($2.0665 billion) with commercial creditors, and 10.4% ($1.0645 billion) with bilateral institutions.

Additionally, 80.4% of the public debt ($8.2192 billion) was contracted through loans, while 19.6% ($2 billion) corresponds to securities issued in the international financial market (Sovereign Bonds) with a ten-year term, the Central Bank noted.

Of the total sovereign bonds, $700 million were placed in January 2017, $600 million in June 2020, and $700 million last November. The issuances will be canceled through a single capital payment at maturity in 2027, 2030, and 2034, respectively, it specified.

The public debt service in January reached $50.5 million, of which $29.5 million were allocated to the payment of interest and commissions, and $21 million to capital, the Honduran organization indicated.

This increase in public debt highlights the ongoing financial challenges facing Honduras. The composition of the debt, with a significant portion owed to multilateral organizations, reflects the country's reliance on international financial institutions. The issuance of sovereign bonds also indicates Honduras' participation in global financial markets to secure funding.