U.S. to restart aid to Honduras as crisis ends

[Judi Lynn]

U.S. to restart aid to Honduras as crisis ends
Sat Jan 30, 2010 5:52am IST

TEGUCIGALPA (Reuters) - The United States said on Friday it will restart aid to impoverished Honduras after toppled President Manuel Zelaya flew into exile and the country swore in a new leader, ending a long political crisis.
The United States cut off more than $30 million in non-humanitarian aid to Honduras following the June 28 coup that ousted Zelaya, part of a $450 million international aid freeze. The European Union, Venezuela, the World Bank and the Inter-American Development Bank also suspended aid.

The move, however, failed to unseat de facto leader Roberto Micheletti while hurting Hondurans, especially the poor. Honduras received about $1 billion a year in foreign loans, humanitarian aid and subsidized Venezuelan fuel before the coup.

That represented some 20 percent of its national budget.

Other donors have yet to say if they will restart their aid programs. Brazil, Canada, Mexico are among the nations that do not recognize Honduran President Porfirio Lobo because the November elections were organized by the de facto government.

The United States has recognized Lobo.

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