TAIPEI (TVBS News) — Honduras owes Taiwan nearly US＄440 million (NT＄13.8 billion), a debt accumulated over several years and still outstanding nearly a year after it severed its over eight-decade-old diplomatic ties with Taiwan in favor of China.
Honduras, a country in Central America, ended more than 80 years of diplomatic relations with Taiwan on March 25, 2023, and established diplomatic relations with China on the same day.
The current president of Honduras, Xiomara Castro, did not borrow any more from Taiwan. The last financing from Taiwan was made during the tenure of her predecessor, Juan Orlando Hernández, who borrowed US＄300 million in 2019.
The funds borrowed were primarily used for housing reconstruction, school facilities, and nutritional lunches, according to La Prensa, a Honduran media outlet.
Honduras opted for diplomatic relations with Beijing in the hopes of gaining greater economic support and loans from the Chinese government.
Following Honduras's diplomatic break with Taiwan, the country's white shrimp exports were affected. Honduras has now turned to China for similar tariff preferences, according to La Prensa.