By Gustavo Palencia

TEGUCIGALPA – Honduras has requested to join the CAF Development Bank of Latin America (Reuters), as President Xiomara Castro seeks funding to correct severe budgetary inequalities left behind by her predecessor.

Castro was elected in January. He must deal with a debt amounting to almost $15.7 Billion, which is 59.3%, of Honduras Gross Domestic Product.

According to officials from the finance ministry, more than 30% must be used for debt repayment.

The government addressed a letter that was published by the development bank and stated, “The Honduran government formally expressed interest in being a CAF member with the goal of having many financial tools and instrument available.”

Castro mentions in the letter that he wants Honduras to be a part of the CAF “within a short time”.

To address public financial imbalances for the next two decades, the Honduran Congress authorized the Government to assume $2 billion of internal and externe debt.

CAF was established in Caracas, Venezuela, in 1970. It is composed of 20 countries: 18 are from Latin America and Caribbean; Spain and Portugal also have an 18-member team.