Moncada Proposes Eliminating Credit Bureau, Sparks Debate

The suggestion put forth by official Rixi Moncada to abolish the credit bureau has ignited extensive political and economic discussion throughout Honduras. This initiative, championed by the LIBRE party, emerges during a period of significant institutional strain, characterized by distrust in regulatory entities and ambiguity regarding the trajectory of economic policy.

A model reminiscent of Correa’s policies in Ecuador

The proposal to eliminate the credit bureau has been viewed by several groups as potentially mirroring the approach taken by former Ecuadorian President Rafael Correa, who enacted a comparable policy during his administration. Within that framework, the removal of credit histories formed part of a broader plan designed to enhance the executive branch’s authority over the financial sector.

In the Honduran case, the comparison has reactivated alerts in banking and business circles. Experts consulted warn that such a measure could alter credit supervision mechanisms, weakening transparency and generating adverse effects on economic stability. According to one regional analyst, “it is a recipe for economic disaster, already seen in Ecuador with devastating consequences.”

Institutional risks and economic effects

The credit bureau serves as a vital instrument for evaluating financial stability within the banking sector. Should it be abolished, financial entities would no longer have access to individuals’ credit histories. Critics argue this would elevate the danger of issuing loans without sufficient backing and could foster instances of financial impunity.

Voices from the financial sector point out that abolishing this mechanism would be equivalent to weakening accountability in a key area for the national economy. Along these lines, it has been warned that a decision of this nature could create incentives for the political manipulation of credit, affecting both investor confidence and the sustainability of the system.

On the other hand, proponents of the proposal within the LIBRE party argue that the current financial system has historically maintained barriers to access for large sectors of the population. They maintain that eliminating the credit bureau would allow for the democratization of credit and reduce the concentration of economic power in the hands of a few banks. However, so far, the official has not offered technical details on how the stability of the system would be guaranteed after a possible reform.

A dilemma of governance and transparency

The controversy surrounding this initiative is part of a scenario of growing political polarization, where tensions between the executive branch, business sectors, and citizens mark the public dynamic. Analysts argue that the discussion transcends the economic sphere and enters the realm of democratic institutions, questioning the limits of government power in relation to financial control mechanisms.

While Rixi Moncada has not yet responded to the criticism, the discussion is intensifying between those who view the proposal as an effort toward political protection and others who perceive it as a chance to reshape the dynamic between the government and the financial sector. Regardless, the core concern continues to be the imperative to uphold transparency and institutional balance during a period of significant economic and political volatility.

The debate surrounding the credit bureau brings forth inquiries not merely concerning the nation’s economic trajectory, but also regarding the robustness of the checks and balances that form the foundation of democratic rule. Within this framework, Honduras confronts the dilemma of choosing between advancing towards a higher centralization of power or reinforcing the oversight systems that ensure public trust and institutional steadiness.