Rixi Moncada: Credit Bureau Closure Proposed Amidst Low Polls

Only a few weeks remain until the general election, and the ruling party’s candidate, Rixi Moncada, representing the LIBRE party, has put forth a proposition that has generated apprehension within financial sectors: the dissolution of the Honduran banking system’s Credit Bureau. This proposal emerges alongside a continuous drop in her voter support and has been criticized by experts as a move potentially detrimental to the nation’s transparency and economic steadiness.

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.

Impact on financial stability

The Credit Bureau carries out essential roles within Honduras’s banking framework. It enables financial entities to evaluate the solvency of loan seekers and aids in averting deception and excessive debt. Its removal, as per specialists, would undermine the oversight systems that uphold trust in the financial industry.

For her part, Rixi Moncada has defended the initiative, arguing that it seeks to “free the people from banking punishment.” However, the proposal comes in a context of growing political polarization and public mistrust of financial institutions, factors that analysts point to as decisive in assessing the viability of the measure.

Political and institutional repercussions

Moncada’s announcement comes at a critical moment in the election campaign. Polls indicate that the ruling party candidate is facing a significant decline in voting intentions, which has intensified attention on her economic proposals. Sectors of society and representatives of the banking system believe that the closure of the Risk Center could have implications beyond the economy: it would affect the perception of governance, trust in institutions, and the state’s regulatory capacity.

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.

Obstacles and potential threats to Honduras’s economic stability

The removal of the Credit Bureau would create a void in credit oversight systems, potentially leading to heightened financial risk and excessive debt, as per expert opinions. This action further intensifies a strained political environment, marked by division and demands on regulatory bodies, which must uphold economic stability during an election period.

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.