2010 saw the passage of the Law for the Promotion of Public-Private
Partnerships (PPPs) in Honduras and in 2011 the Law for Promotion and
Protection of Investments expanded tax incentives for domestic and
foreign investors, offered them greater protections against legislative
changes (especially regarding taxes), and established the validity of
arbitration awards in the country. For those reasons and others, a large
percentage of new investment is expected to be funnelled through the
PPPs law in coming years....
CONTEXT AND TRENDS
Still feeling the effects of the 2009 political crisis that saw then-President Manuel Zelaya ousted from office, the Honduran financial system remains subject to investor fears regarding the country's governmental stability. Current President Porfirio Lobo has taken numerous steps to restore investor confidence, leaving many with a feeling of optimism towards the future, albeit a guarded one....