Honduras to Strengthen Its Social Protection System with IDB Support

This program hopes to benefit 50,000 households in extreme poverty that will receive conditional cash transfers.

The Inter-American Development Bank (IDB) approved a $75.9 million loan to improve living conditions in households in the areas of Honduras with the highest rates of extreme poverty, and to cultivate human capital and self-management capacity in those households.

The project plans to use conditional cash transfers to boost the minimum income of participating households and protect that income against external climate, economic, and health shocks. The initiative will also strengthen the Social Protection System and services for improving the long-term conditions and capacities of the poorest households, prioritizing the geographical areas targeted by the Solidarity Network Program.

This operation is designed to benefit 50,000 households in extreme poverty through conditional cash transfers, as well as 165,000 children through nutrition and early child development programs. It also aims to benefit 6,000 school-aged children through the stay-in-school program and 1,000 youth who will receive comprehensive support. The operation will indirectly benefit 350,000 households in extreme poverty by strengthening the Social Protection System’s service model.

In the area of health, the loan aims to improve the use and range of health and nutrition services for women (especially young pregnant women) and for children ages 0 to 6.

In terms of education, the goal of the operation is to strengthen elementary educational services by working to keep children in school until at least seventh grade. It also aims to bolster comprehensive support services for young people (ages 14 to 19).

In addition to the COVID-19 pandemic, Honduras was also recently hit by two category 4 hurricanes (Eta and Iota), which significantly dampened its economic activity.

The $75.9 million IDB loan will be disbursed over the course of four years.