CABEI and Banco LAFISE aim to improve the region's coffee sector

Panama, July 19, 2019.- The Central American Bank for Economic Integration (CABEI) received a request for non-reimbursable technical cooperation from Banco LAFISE in order to support the implementation of the Regional Coffee Growing Transformation Initiative (ITRECAFE) that will structure a regional trust to provide financial and non-financial resources in support of this sector.

Support to the coffee sector
CABEI Executive President, Dr. Dante Mossi, stressed that this action is in line with the Bank's interest in addressing priority issues from a regional perspective given that this is the Institution's mission.

He also mentioned the importance of joining efforts together with LAFISE and other actors involved in the problem facing coffee growing in the region, also highlighting the increase in migration flow from the coffee growing areas to the northern countries as a problem to be solved.

In addition, he pointed out the need to create a coffee fund that connects the producers of special coffees to more competitive niche markets in terms of global prices and quality. Dr. Mossi stated that, "We think that Panama has a good position to sell this concept and that's why we want to establish this fund in that country."

At the level of the initial proposal, said fund would be constituted by an approximate capital of US$200 to US$300 million, which could be capitalized through private contributions from strategic partners interested in the issue, as well as by means of the issuance and placement of Sovereign bonds; on this point, it was commented that there are already previous experiences at the level of the Central American region. Other elements to explore could be the development of price indexes, agricultural insurance and the certification of the regional coffee park.