 The banks had excess reserves, and lending rates were in the area of 26 to 29 percent, with few borrowers.Prior to liberalization measures, the Central Bank of Honduras (Banco Central de Honduras) maintained interest rate controls, setting a 19 percent ceiling, with the market lending rate hovering around 26 percent in late 1991.With inflation hitting 33 percent in 1990, there was, in fact, a negative real interest rate, but this situation reversed in 1991 when rates were high relative to inflation.