MEDIA REACTION ON DEBT FORGIVENESS, JULY 13, 2005

UNCLAS TEGUCIGALPA 001472

SIPDIS

DEPT. FOR WHA/PD; IIP/G/WHA DIPASQUALE; AND IIP/T/ES
DEPT. FOR PM AND EB/TRA
DEPT. FOR WHA/EPSC, WHA/PPC AND WHA/CEN

E.O. 12958: N/A
TAGS: OIIP KPAO PGOV MASS EAID HO
SUBJECT: MEDIA REACTION ON DEBT FORGIVENESS, JULY 13, 2005



1. On 07/13 the Tegucigalpa-based liberal daily "La Tribuna"
published an op-ed by Amilcar Santamaria, educational and
diplomatic journalist, entitled "The Debt Forgiveness
Party." "While the citizenry is anguished by the
announcement of a new increase in transport prices and the
poor begin to lose patience, the government is still
celebrating the announced debt forgiveness and saying that
we will soon have billions of dollars to put on a carnival
of Central American scale."

"Some observers ask themselves if this official euphoria is
legitimate and if the men in power really think that the
money is already in the Republic's Treasury, or to the
contrary, it is a heavy smoke screen destined to misdirect
the attention of the people from problems such as
electricity and gas that have a real impact in their lives."

"To get to a point where the debtor country suspends the
debt it must subscribe itself to formal agreements that will
guarantee execution calendars and control mechanisms and
effective evaluations."

"No multilateral agency has published instructions on the
advertised debt forgiveness and we dare to suggest that it
won't happen before November 27, the date on which Hondurans
will elect a new government."

"Once the president puts out the fires in the upcoming
months [transport and educational crises, etc.] he can take
care of what will happen with debt forgiveness funds that,
according to all signs, the funds will remain in the
refrigerator for the next few months."

Palmer