Honduras

Editor’s notes

Honduras’ economy has seen moderate growth in recent years, with GDP increasing by 3.6% in 2024 according to figures from the World Bank – although a slowdown to 2.8% is predicted for 2025, stemming from global political uncertainties, a reduction in exports and fewer remittances from the US.

Myriad multinational companies – including more than 200 US businesses – operate in Honduras, thanks to its wealth of natural resources, rich agricultural sector and strategic location, but recent reforms introduced as part of President Xiomara Castro’s plans to strengthen the role of the state in the economy have caused challenges for investors, dampening the M&A market.

This includes the April 2022 repeal of the law on hourly employment, limiting flexible working (which has particularly affected companies in the service sector); May 2022 changes to laws relating to energy investments; the April 2022 repeal of the law establishing special economic zones (ZEDEs), leaving the status of these zones in doubt; and Honduras’ withdrawal from the International Centre for Settlement of Investment Disputes (ICSID), effective in August 2024, after claims amounting to billions of dollars were brought against the state by foreign investors.

Banking and corporate transactions have also been limited by the Central Bank of Honduras’ strict processes governing the sale of US dollars, leading to a shortage.

In the dispute resolution sphere, the trend towards mediation, conciliation and arbitration has continued apace, as companies seek to avoid the lengthy litigation process. However, an electronic case management system is being rolled out, aimed at increasing transparency and reducing delays in the court system.

While activity in the energy sector has been limited, in the infrastructure space, the World Bank recently announced a $187m investment in the development of the road transport network in northern Honduras, including the repair of the highway connecting La Ceiba and Puerto Castilla, which was severely damaged by Tropical Storm Sara in November 2024, while the Central American Bank for Economic Integration (CABEI) recently approved a $606m investment in road improvements.

In the legal market, regional heavyweights Aguilar Castillo Love, Arias and Consortium Legal are key players, along with other prominent Central American outfits including BLP, Alta, GarciaBodan, Lexincorp, Mayora & Mayora, S.C. and Central Law Honduras. International firms Dentons Central America and ECIJA also have a growing presence in the market.

Among the notable domestic firms are full-service practices Gufa Law and López Rodezno & Asociados, as well as a number of boutiques, including litigation-focused Galeano & Garcia and IP specialists Bufete Casco, Bufete Durón, Bufete Mejía & Asociados and Casco & Casco.

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Dentons advises Bank Gospodarstwa Krajowego on US$60 million export financing to Molo Group for hotel complex in Turks and Caicos

Dentons has advised Bank Gospodarstwa Krajowego (BGK), the Polish development bank, on a long-term investment loan of up to US$60 million granted to the Molo Group, owned by the Slominski family. The financing will be used to build a hotel complex with 251 rooms and suites on Providenciales, the main island of the Turks and Caicos archipelago in the Caribbean. The buildings will be constructed from equipment and modules manufactured in Poland. “It has been a great pleasure and satisfaction to assist BGK with this prestigious financing transaction, supporting the expansion of Molo Group in their largest investment to date. This project not only promotes Polish exports but also features exceptional hotel developments in some of the most stunning locations in the Caribbean”, said Tomasz Zwoliński, partner in the Banking and Finance practice in Warsaw. The complex includes two modular hotels: the 4-star boutique Indigo hotel and the 5-star Kimpton hotel. Both brands are owned by the international IHG group. The Indigo hotel is scheduled for completion by the end of 2025, while the Kimpton is scheduled for completion in the first half of 2027. Tomasz Zwoliński supervised and led the cross-border project, advising on English and Polish law matters related to preparing, negotiating and signing the finance documents and securities, which covered five jurisdictions and involved collateral and mechanisms related to hurricane risk. He was supported by Jakub Zienkiewicz (counsel) and Kamil Bator (associate) from the Banking and Finance team in Warsaw. The transaction team also included partner Babette Märzheuser-Wood, Global Head of the Franchise Group, and Agnieszka Nagórska-Kordeczka (counsel), who advised on hotel franchise agreements. Dentons worked alongside teams from Griffiths & Partners, who served as Turks and Caicos counsel, and Massiah Law, acting as Gibraltar law counsel, both members of the Nextlaw referral network. About Dentons Across over 80 countries, Dentons helps you grow, protect, operate and finance your organization by providing uniquely global and deeply local legal solutions. Polycentric, purpose-driven and committed to inclusion, diversity, equity and sustainability, we focus on what matters most to you. dentons.com Media contact Lidia Adamczyk Communications, Marketing & Business Development Manager +48 513 045 352 [email protected]  
Dentons - May 18 2025