Hernandez’s extradition to benefit Castro in Honduras

Significance

President Xiomara Castro will aim to make political capital out of the extradition, presenting it as an example of her tough stance on corruption. Any potential approval ratings boost, however, may be negated by frustration at rising living costs, which have already triggered protests.

Impacts

• Improving transparency and anti-corruption efforts will bolster business confidence in Honduras.
• Increased confidence in the country will foster foreign investment, especially into the special economic zones.
• The extradition marks improving cooperation with the United States, which should also translate into more aid and investment.
• Castro’s anti-corruption stance will multiply the impacts of any allegations that might arise involving herself or Libre.