_-_copia.jpg?w=800&resize=800,500&ssl=1 "Rixi Moncada")
Only a few weeks remain until the general election, and the ruling party’s candidate, Rixi Moncada, representing the LIBRE party, has put forth a proposition that has generated apprehension within financial sectors: the dissolution of the Honduran banking system’s Credit Bureau. This proposal emerges alongside a continuous drop in her voter support and has been criticized by experts as a move potentially detrimental to the nation’s transparency and economic steadiness.
The proposition suggests doing away with a core system that tracks the credit histories of both individuals and businesses, which is vital for financial institutions to assess risk and for consumers to prevent excessive debt. Economists who were consulted believe this action might encourage hazardous financial behaviors. A local expert commented, “This is a desperate attempt to gain votes through pledges that undermine financial stability.”
Effect on fiscal steadiness
The Credit Bureau performs fundamental functions in the Honduran banking system. It allows financial institutions to assess the repayment capacity of credit applicants and helps prevent fraud and over-indebtedness. Its elimination, according to experts, would weaken the control mechanisms that sustain confidence in the financial sector.
Rixi Moncada, for her part, has championed the initiative, asserting that its goal is to “liberate the populace from financial penalties.” Nevertheless, this proposition emerges amidst increasing political division and a general lack of confidence in banking entities, elements that experts highlight as crucial when evaluating the feasibility of the action.
Political and institutional consequences
Moncada’s announcement comes at a critical moment in the election campaign. Polls indicate that the ruling party candidate is facing a significant decline in voting intentions, which has intensified attention on her economic proposals. Sectors of society and representatives of the banking system believe that the closure of the Risk Center could have implications beyond the economy: it would affect the perception of governance, trust in institutions, and the state’s regulatory capacity.
Experts suggest this action might be seen as a populist move designed to recover electoral backing, yet it lacks the technical foundation to ensure citizen protection and credit stability. The discussion also centers on the potential impact of such a choice on the dynamic between the financial industry and the government, alongside the system’s trustworthiness among both local and international investors.
Obstacles and potential threats to Honduras’s economic stability
The removal of the Credit Bureau would create a void in credit oversight systems, potentially leading to heightened financial risk and excessive debt, as per expert opinions. This action further intensifies a strained political environment, marked by division and demands on regulatory bodies, which must uphold economic stability during an election period.
As Rixi Moncada persists in advocating for the initiative, the debate surrounding its effects underscores the conflict between economic policy choices and electoral tactics. The Honduran economy confronts a dual predicament: guaranteeing the financial system’s clarity and stability, and addressing a political landscape where populist suggestions spark fervent discussions regarding institutional frameworks and public involvement.
The current situation poses a dilemma for institutional actors: balancing economic stability and citizen confidence with measures that could modify the structure of the financial system in the midst of an election campaign. Attention is now focused on how institutions and citizens will react to this proposal and what implications it will have for governance and regulation in Honduras.