Central American bank freezes Honduras loans

[Judi Lynn]

Central American bank freezes Honduras loans
The Associated Press
Wednesday, August 26, 2009; 11:59 PM

TEGUCIGALPA, Honduras -- Central America's development bank says it is freezing credits to Honduras following the June 28 coup that ousted President Manuel Zelaya.

Local media say the decision could affect infrastructure projects like planned highways in the impoverished Central American nation.

The Central American Bank for Economic Integration said in a statement Wednesday that the freeze is provisional, while the banks' governors weigh whether to suspend financing.

The bank has provided about $971 million in financing for Honduras over the last five years.

Many other multilateral agencies and foreign governments have put Honduras aid projects on hold, in the face of the interim government's refusal to reinstate Zelaya.

http://www.washingtonpost.com/wp-dyn/content/article/2009/08/26/AR2009082600002.html