Honduras is to receive loans from the World Bank again, amounting to a total of 390 million dollars. Funds were frozen when President Manuel Zelaya was ousted from power in June last year. Donor countries and international aid organisations also cut off funding.

The coup against Mr Zelaya marked the beginning of a political crisis which lasted for seven months. Honduras has now elected a new president, who was inaugurated last month. The United States subsequently restored aid and the World Bank is now following suit.

The impoverished South American country received about one billion dollars in loans, humanitarian aid and fuel each year before the coup, around one fifth of its national budget.