Newly Inaugurated As First Lady President Of Honduras, Xiomara Castro Inherits A Debt Of 60 Percent Of GDP

Honduras is chaired by Xiomara Castro de Zelaya. (Twitter/@XiomaraCastroZ)

JAKARTA - Xiomara Castro de Zelaya was sworn in as Honduras' first female president on Thursday to a cheering crowd including United States Vice President Kamala Harris, who pledged the US government's support to stem migration and fight corruption.

Castro's inauguration ended eight years in power of Juan Orlando Hernandez, a Washington ally who was accused in a US corruption court of having links to drug dealers. It comes as his government faces a test of a sharply divided Congress, rising debt and relations with China.

Castro, flanked by her husband, former President Manuel Zelaya, was sworn in at a football stadium, where supporters applauded for her vow to repair the country's huge debt burden.

"The economic catastrophe I have inherited is unparalleled in the history of our country," a somber Castro said in his inaugural address.

Castro said it was "nearly impossible" to make payments on current debt without restructuring, after debt soared sevenfold under his two conservative predecessors.

The country's total debt stands at around $15.5 billion, equivalent to Rp.222.882.250 million, or nearly 60 percent of gross domestic product (GDP), an economic issue that Castro often highlighted ahead of his landslide victory in November.

"My government will not continue the vortex of looting that has condemned the younger generation to pay the debts they incur behind them," he explained.

President Castro promised to immediately give more than 1 million poor Hondurans electricity free of charge, with larger consumers subsidizing the costs.

In addition, President Castro, who describes himself as a democratic socialist, has vowed to tackle corruption, poverty and violence, chronic problems that have fueled migrants bound to the United States.

But his legislative program has been jeopardized by rebel politicians from his leftist Libre party, which allied with the opposition National Party to elect one of its members to lead Congress, violating an agreement with a key electoral ally.

President Castro also took office at a time of controversy for his predecessor Hernandez, who has long been a US ally in immigration and anti-narcotics operations.

US Congressman Norma Torres has called for Hernandez to be indicted on drug charges, with US officials seeking his extradition.

But Hernandez may be protected from extradition for up to four years as a new member of Central America's parliament. He has repeatedly denied allegations of corruption and links to drug dealers.

To note, Hernandez's brother was sentenced last year to life in prison by a US judge, plus 30 years for drug trafficking.