WB freezes aid to coup-hit Honduras
USA: The World Bank on Wednesday froze economic aid to
Honduras following a coup which ousted President Manuel Zelaya.
The bank has been involved in 16 projects in the Central American
nation.
“With regards to the existing portfolio of 16 projects, the World
Bank decided to make a pause in its disbursements until there is a
resolution of the present crisis,” Sergio Jellinek, a spokesman for the
World Bank on Latin America and the Caribbean, told AFP.
He said that 270 million dollars of the 400 million dollars allocated
for the projects remains undisbursed.
Honduras is among the poorest counties in the region receiving
no-interest loans and grants from the World Bank.
Jellinek said the bank was “closely following the decisions and
actions” by the Organization of American States (OAS), which gave the
country 72 hours to reinstate Zelaya as president.
“We will wait 72 hours in order to continue with this process” in
light of the OAS ultimatum, Zelaya told reporters in Washington one day
before his planned return to his homeland Thursday.
The OAS in a communique said Honduras faces suspension from the
organization if it does not restore his presidency.
The organization’s general assembly instructed Secretary General Jose
Miguel Insulza to undertake “diplomatic initiatives aimed at... the
reinstatement of President Jose Manuel Zelaya Rosales,” within the next
three days.
If these efforts prove fruitless, Honduras will be barred from the
OAS in keeping with the group’s charter, according to a communique
issued ahead of a planned meeting in Washington between Zelaya and US
officials. Tensions have flared in Honduras since Zelaya was deposed in
an army-backed coup on Sunday and swiftly flown out of the country. The
coup was the first in the major banana and coffee exporter in more than
20 years. Washington,Thursday, AFP |