Honduras says 'economic reality' behind Taiwan-to-China switch

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Honduras says 'economic reality' behind Taiwan-to-China switch
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Economic necessity and Taiwan's refusal to increase financial aid were behind Honduras' decision to establish diplomatic ties with China, says FM Eduardo Reina

Honduras says it has needs in energy, social policies and servicing its debt, which is"drowning the country."

Honduras President Xiomara Castro announced on Tuesday that she had instructed Reina to "undertake the official opening of relations" with China, thus severing the Central American country's long-standing diplomatic relationship with Taiwan.television channel on Wednesday, Reina said Honduras had proposed "more important relations given the great needs of the Honduran people" but that Taiwan had refused.

Reina said Honduras had asked Taiwan to double its $50 million a year of aid and also explored "realigning" its $600 million debt to the island nation, but did not receive positive responses.The switch — which Castro pledged to make before she was elected in 2021 — comes weeks after her government announced it was negotiating with China to build a hydroelectric dam.

He said Honduras paid $2.2 billion last year and must pay another $2.3 billion this year for its external and internal debt, which amounts to $20 billion.

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