Decree 39-2026

This decree ratifies and validates Honduras' membership in the Development Bank of Latin America and the Caribbean (CAF), correcting procedural irregularities from 2023. It allows the country to continue accessing multilateral financing for infrastructure, climate, and development projects, strengthening the legal certainty of all loans and operations signed with this institution since November 2023.

Whereas the State of Honduras, by means of a note dated April 2022, formally expressed its interest in joining as a full member of the Development Bank of Latin America and the Caribbean "CAF", a premier multilateral financial institution that promotes sustainable development, regional integration, and concessional financing in Latin America and the Caribbean.

Whereas on July 18, 2022, the Convention for the Subscription of Ordinary Capital Stock was executed between Honduras and CAF, and the Shareholders' Assembly of CAF approved said accession in August 2022.

Whereas Honduras deposited the instrument of accession before CAF in August 2023, and acquired the Series "A" share in November 2023 and, since that date, holds the status of member with full rights and obligations, actively participating in the Shareholders' Assemblies and in the governance of the Bank, as recognized by CAF itself in its official portal and in communications from October 2025.

Whereas Decree No. 38-2023 published in the Official Journal "La Gaceta" on July 25, 2023, notwithstanding that there were procedural irregularities in the approval process consisting of the FAILURE TO RATIFY the minutes of the session held in the National Congress on July 12, 2023, which generated legal questions, complaints of defects in legality, and constitutional challenges filed by opposition sectors and civil society.

Whereas it is imperative to remedy said procedural irregularities through express ratification and legislative convalidation contained in this Decree, in order to provide full legal certainty to the accession of the State of Honduras as a full member of the DEVELOPMENT BANK OF LATIN AMERICA AND THE CARIBBEAN "CAF", as well as to all credit contracts, financing operations, technical assistance, and other agreements entered into with said Multilateral Institution to date.

Whereas since August 2023 the State of Honduras has been acting as a full member of the Development Bank of Latin America and the Caribbean "CAF" in a consolidated manner, participating in its governance bodies, receiving and executing credit disbursements and fulfilling the resulting obligations, thereby creating a situation of fact fully accepted by the parties, for which reason it is necessary to regularize said situation through express ratification and legislative convalidation contained in this Decree, in application of the principle of good faith enshrined in Articles 16 and 17 of the Constitution of the Republic and the general principles of International Law.

Whereas express legislative ratification and convalidation of all prior acts strengthen legal certainty, eliminate any procedural doubt that occurred in 2023, protect the validity of contracts already executed, and guarantee the continuity of financial flows, avoiding litigation or challenges that could generate uncertainty.

Whereas the failure to expressly convalidate the accession and credits could be interpreted as non-compliance with international commitments, affecting Honduras' credibility before multilateral organizations, investors, and strategic partners, which would increase country risk, raise interest rates on future loans, and generate resulting economic instability.

Whereas accession to CAF and access to its resources contribute directly to reducing external vulnerability, diversifying sources of financing, financing critical infrastructure, mitigating climate risks, promoting social inclusion, and generating employment, all of which consolidates the country's macroeconomic stability and human development.

Whereas the State of Honduras has fully complied with the payment of ordinary capital subscription fees and registration fees, having made the corresponding disbursements and subsequent quotas to date, thereby demonstrating the country's financial commitment and seriousness before the international community.

Whereas since its incorporation as a full member, CAF has approved and disbursed in favor of Honduras multiple credit operations, technical assistance, and financing for migrant emergency, infrastructure, MSMEs, and climate resilience. All these operations have been executed by the Executive Branch and require express ratification for full validity and execution.

Whereas international sovereign risk rating agencies maintain Honduras in the speculative grade category with generally stable or moderate perspectives, reflecting a level of country risk perceived as moderate; access to long-term multilateral financing under preferential conditions contributes directly to reducing the effective cost of external debt, diversifying sources of financing, and strengthening the country's sovereign credit rating by demonstrating commitment to fiscal discipline, multilateral governance, and the execution of sustainable development projects.

Whereas in accordance with Article 205, Attribution 19) of the Constitution of the Republic, it is within the power of the National Congress to: Approve contracts that are to produce or extend their effects to the following government period, being the present contractual extension an act subject to its approval, within the framework of the constitutional powers of oversight and protection of the public interest that correspond to this Power of the State.

Whereas in accordance with Article 205, Attribution 1) of the Constitution of the Republic, it is within the power of the National Congress to: Create, decree, interpret, reform, and repeal laws.