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Last Updated: Wednesday, 27 August, 2003, 09:55 GMT 10:55 UK
Hondurans riot over IMF reforms
Riots in Tegucigalpa
Protests were led by workers' groups
Honduran demonstrators have clashed with riot police in the capital, Tegucigalpa, as protests escalate against reforms ordered by the International Monetary Fund (IMF).

Twenty people were injured, buildings were damaged and streets were blocked overnight by burning barricades.

Protestors, most of whom tried to hide their identity, have been angered by the government's efforts to secure a $1bn (£637m) IMF loan.

The money comes with demands for sweeping deregulation, including privatisation of utilities and wage-freezes for public-sector workers.

Condemning the violence, President Ricardo Maduro insisted that his government would not back down to "blackmail".

Salary strife

The demonstrations are being organised by a loose coalition of opposition groups, notably the left-wing Popular Resistance Group (CRP).

Ricardo Maduro
President Maduro says he willl stand firm
Labour organisations are particularly concerned at plans - currently under discussion in parliament - to freeze salaries for teachers and doctors and reform collective bargaining rules.

Mr Maduro argues that public-sector salaries have almost trebled over the past three years, and that a freeze is now necessary in order to hire more state workers.

The Honduran Government needs an IMF credit, which has been on hold since late last year, because falling coffee prices have battered state finances.



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SEE ALSO:
Country profile: Honduras
11 Jul 03  |  Country profiles


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