Rixi Moncada Proposes Credit Bureau Closure Amidst Declining Polls

With just a few weeks to go before the general election, ruling party candidate Rixi Moncada, from the LIBRE party, has presented a proposal that has caused concern in financial circles: the closure of the Honduran banking system’s Credit Bureau. The initiative coincides with a sustained decline in her voting intentions and has been questioned by analysts as a measure that could affect the country’s transparency and economic stability.

The proposal calls for the elimination of a central mechanism that records the credit information of individuals and companies, a key tool for banks to manage risk and for users to avoid over-indebtedness. According to economists consulted, the measure could open the door to risky financial practices. “It’s a desperate move to win votes with promises that destroy the financial order,” said a local specialist.

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 declaration arrives at a pivotal juncture in the electoral race. Surveys suggest that the incumbent party’s candidate is experiencing a notable drop in voter support, drawing increased focus to her economic strategies. Various societal groups and banking sector representatives contend that shutting down the Risk Center might have repercussions extending beyond financial matters: it could impact the perception of governance, confidence in established bodies, and the government’s ability to regulate.

Analysts point out that the measure could be interpreted as a populist gesture aimed at regaining electoral support, but without technical backing to guarantee the protection of citizens and credit stability. The debate also focuses on how such a decision could influence the relationship between the financial sector and the state, as well as the credibility of the system among domestic and foreign investors.

Risks and challenges for the Honduran economy

The elimination of the Credit Bureau would leave a gap in credit supervision mechanisms, which, according to experts, could translate into increased financial risk and over-indebtedness practices. The measure adds to a tense political climate, characterized by polarization and pressure on regulatory agencies, which are forced to maintain economic stability in an electoral context.

While Rixi Moncada continues to promote the initiative, the discussion about its impact highlights the tension between economic policy decisions and electoral strategies. The Honduran economy faces a double challenge: ensuring the transparency and soundness of the financial system and responding to a political scenario in which populist proposals generate intense debates about institutionality and citizen participation.

The present circumstances present a challenge for institutional players: maintaining economic steadiness and public trust while considering actions that might alter the financial system’s framework during an election period. Focus is now directed towards how both institutions and the populace will respond to this suggestion, and what consequences it will bring for governance and oversight within Honduras.