As I understand it, the previous govt invited the conquistadores and let them buy free reign.

And the souvreign changed his opinion on that. Corruption is not a trapdoor function, you can get rid of that.

You will also get rid of any trust from foreigners and, thus, any future foreign investment.

Sometimes keeping your word is more important that attainment of ideological purity. China can survive such a loss of trust, because it is a Behemoth of a nation and can live somehow regardless. Honduras much less so.

(I am saying this as a citizen of a small country who doesn't like all our commitments either, but the alternative of just going back on our word would be fairly detrimental to us long term.)

Was there really ever any trust, except for the - we can get away with bribing people and steal stuff as fast as we can carry and can get away with it? A dishonest merchant will only meet dishonest people.