Honduras is a nation of northern Central America, bordered to the north by Guatemala and El Salvador, to the south by Nicaragua, to the west by the Pacific Ocean and to the east by the Gulf of Honduras and the Caribbean Sea. The nation of Belize (formerly "British Honduras") is some 75 km away across the Bay of Honduras at the two nation's closest points.
Part of Spain's vast empire in the New World, Honduras became a state of the nation of Central America in 1821, and became an independent republic at the demise of the union in 1840.
After two and one-half decades of mostly military rule, a freely elected civilian government came to power in 1982. During the 1980s, Honduras proved a haven for anti-Sandinistacontras fighting the Nicaraguan government and an ally to Salvadoran government forces fighting against leftist guerrillas.
Honduras spent 1999 primarily recovering from Hurricane Mitch, which killed more than 5,000 people and caused about $3 billion in damage. Although it is slated to receive about $2.76 billion in international aid, the economy shrank 3% with widening current account and fiscal deficits in 1999. It nevertheless met most of its macroeconomic targets. Honduras may also get relief from its $4.4 billion external debt under the Heavily Indebted Poor Countries (HIPC) initiative.