IDB Lends US$10 Million for Bono 10,000 Welfare Program

The Inter-American Development Bank (IDB) has extended a US$100 million loan to Honduras to improve the efficiency and coverage of the Bono 10,000 Program to support the social safety net. The program, established in 2010, has benefited more than 350,000 poor households, and improving its efficiency and targeting should enable it to reach 50 percent of the country's poorest rural families. The Bono 10,000 aims to increase the use of services in education, health and nutrition of pregnant women and children under 18 years of age through targeted conditional cash transfers. It is also expected to increase the supply of the third cycle of basic education (7th to 9th grade) in selected rural areas and improve the efficiency of program management.

The program seeks comprehensive and sustained interventions that consider gender and cultural factors that constitute barriers to access opportunities and resources in order to help break the cycle of poverty. According to the Household Survey Multipurpose (MPHS) May 2012, two out of three households live in poverty and nearly half in extreme poverty.

 

The executing agency will be the Family Allowance Program (PRAF), a decentralized agency of the Ministry of the Presidency. The IDB financing consists of US$70 million from the ordinary capital, with a 30-year term, a grace period of 5.5 years and an interest rate based on LIBOR, and US$30 million from the Fund for Special Operations, with a 40-year term and grace period and 0.25 percent interest. Local counterpart funds total US$10 million. (6/3/13)

 

1 comment

  • Roberto Bermudez

    Promoting dependency from the politicians, keeping them poor so they will come out for more next time there is elections. It is a waste.

    Roberto Bermudez Comment Link

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