housing in Honduras

Hi John, actually it doesn't sound at all outrageous, given the super high interest rates in Honduras. I don't know anything about Inter-Mac International, but I suspect that is some sort of private lending corporation. This means that the loan it is extending to the government of Honduras is probably NOT at favorable rates of interest... as might be the case with World Bank or IDB loans. The Honduran government will be expected to pay back the loan, and so it is the government that will incur the risk. This means that the government will use these funds to extend credit to people who wish to build homes. The government will probably seek to add a little interest of its own in order to help cover its financial risks. This is simply the way finance works. By the time I finish paying off the cost of my home, I will have paid double its original value due to 30 years worth of interest payments... And this is with the extremely low interests rates available in the US. I don't like it one bit, and it doesn't feel great, but the choice to take the loan out was mine... no one forced me. Personally, I wish the Honduran government would not take out any more loans from anybody because it contributes to an endless cycle of indebtedness. I do not have any great answers to the problem of a lack of adequate housing in Honduras, other than to wish there was something like Habitat for Humanity where Honduran citizens came together to volunteer their time and other resources to build homes for those in need. Mobilization of Honduras' citizens would help solve so many of the country's problems, given that the government is broke and does not have an adequate tax collection system to build up its Treasury. -Marco

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