Honduras’ debt to Taiwan consists of commercial loans issued by Taiwanese banks, the island’s Foreign Ministry spokesman Jeff Liu said, Taiwan News reported on February 17.
The terms of the loan detail the rights and obligations of the parties and the mechanisms for resolving disputes. Therefore, the severing of diplomatic relations between Honduras and Taiwan will not affect these agreements in any way. Honduras will have to repay all loans in accordance with the terms under which they were granted.
Liu confirmed that all loan payments are on schedule. If any Honduran payments default, Taiwanese banks may take appropriate action through international legal channels.
Currently, Honduras’ debt to Taiwan is $449 million and began accumulating in 1999.
The majority was accumulated in 2019 during the presidency of Juan Orlando Hernández. The money was spent on housing, education and development projects.
Let us remember that in March 2023, Honduras withdrew its recognition of Taiwan in favor of China. The Latin American Foreign Ministry said that the decision to revoke Taiwan’s recognition was due to the parties’ failure to agree to increase aid to Honduras and restructure its debt.
On December 15, 2023, Nauru announced the withdrawal of recognition of Taiwan and the establishment of diplomatic relations with the People’s Republic of China. Taiwanese official sources said the People’s Republic of China offered Nauru larger amounts than Taiwan usually offers its diplomatic allies. Nauru, they say, needs money to plug the hole in the budget left after the closure of the Australian migrant accommodation center on the island and the refusal to host a series of sporting events on Nauru.
Before this incident, Taiwan was recognized as an independent state by only 13 countries.
In Central and South America, the following countries maintain diplomatic relations with Taiwan: Guatemala, Belize, Haiti, Paraguay, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines; in the Asia-Pacific region: Marshall Islands, Tuvalu, Nauru, Palau; in Africa, Eswatini; in Europe: the Vatican.
After Tsai Ing-wen became president of Taiwan in 2016, Sao Tome and Principe, Panama, the Dominican Republic, Burkina Faso, El Salvador, Nicaragua, Solomon Islands, Kiribati and, in 2023, Honduras severed relations with the island.
The new president refused to confirm a course toward integration with China. The People’s Republic of China closed its representative office on the island, which unofficially served as an embassy. Other states, including Russia, began to declare that they did not recognize the island’s independence.
Source: Rossa Primavera
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