Economy / Honduras
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Tug Of War?
November 2006 | Ratings UpdateSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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A territorial dispute over the Isla de Conejo could provoke a deterioration in relations between Honduras and El Salvador, and could pose a downside risk to our short-term political risk ratings. President Roberto Micheletti has warned the army to ready itself to defend the island, with El Salvador also claiming sovereignty. While the dispute is by no means recent - the International Court of Justice advised a tripartite solution between El Salvador, Honduras and Nicaragua in 1922 - Micheletti's comments give cause for concern.