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WASHINGTON, June 30 The World Bank has "paused" all lending for development programs to Honduras following a military coup, World Bank President Robert Zoellick said on Tuesday.
"We're working closely with the OAS (Organization of American States) and looking to the OAS to deal with its handling of the crisis under its democratic charter," Zoellick told reporters, "In the process we have put a pause with our lending."
"We had some items which were going to go to our board and we have held those off for now," he told a conference call ahead of a scheduled meeting of Latin American finance ministers in Chile on July 2.
Honduran President Manuel Zelaya was overthrown and forced into exile in Costa Rica in the coup on Sunday, which has been condemned by the international community including leftist allies from the region.
Honduras borrows from the World Bank's fund that provides low-cost loans and grants to poor countries, and Zoellick said the country's allocation for the next fiscal year was around $80 million.
Asked under what conditions would the World Bank consider resuming lending to Honduras, Zoellick said: "It is a situation that is in flux and fluid and in this case we are trying to play a supportive role with the region and its overall goals to restore democracy." (Reporting by Lesley Wroughton; Editing by W Simon)