Honduran state legal and financial asset management

In October 2026, Honduras successfully avoided a $460 million international arbitration claim filed by the Mexican firm JLL Capital. The International Centre for Settlement of Investment Disputes ruled it lacked jurisdiction to resolve the dispute, which involved allegations that the state had expropriated investments and denied justice in violation of a free trade agreement. The tribunal accepted arguments that the dispute concerned financial services, a sector excluded from the treaty’s investment protection chapter.

By November 2026, the Honduran government implemented Legislative Decree 227-2026, a reform allowing for the early distribution of approximately 1.2 billion lempiras in assets seized by the state. This reform empowers the National Defense and Security Council to authorize the distribution of liquid assets managed by the Office of Seized Asset Administration without waiting for final judicial rulings. These funds are to be allocated among seven state institutions, including the Secretariats of Defense and Security, the Public Ministry, and the Judiciary. The Secretariat of Finance must register these transfers as contingent obligations for restitution in case the legal status of the assets changes.