Debts and investment spur Honduran change of allegiance to China

[Judi Lynn]

4 minute read March 15, 20238:00 PM CDT Last Updated 4 hours ago

By Isabel Woodford, Gustavo Palencia and Sarah Kinosian

TEGUCIGALPA, March 15 (Reuters) - Desire for new investment and less debt helped drive Honduras' decision to establish formal ties with Beijing at Taiwan's expense, the government said on Wednesday, potentially opening the door to more spending on flagship infrastructure projects.

Foreign Minister Eduardo Enrique Reina said the decision by Honduras to switch allegiance was partly because the Central American country was "up to its neck" in financial challenges and debt - including $600 million it owes Taiwan.

"We need investment, we need cooperation," he told local television, insisting it was about "pragmatism, not ideology."

"Honduras' needs are enormous, and we haven't seen that answer from Taiwan," Reina said.

Reina said Honduras had asked Taiwan to double its annual aid to $100 million but never received an answer. Honduras also tried to renegotiate the debt, but it came to nothing, he said.

More:
https://www.reuters.com/world/honduras-decision-open-ties-with-china-about-pragmatism-not-ideology-minister-2023-03-15/

[tirebiter]

1. We haven't gotten rid of the Monroe Doctrine...