CABEI approves US$100 million for Agribusiness and Rural Credit Program to benefit more than 88,000 Honduran families
The initiative will provide credit services and technical assistance to members of 2,007 rural cooperatives, 4,354 micro, small and medium-sized farmers and entrepreneurs, as well as the reactivation of 7,204 hectares nationwide.
Tegucigalpa, November 22th., 2023 - Contributing to improve the living conditions of 88,854 low-income Honduran families living in poverty and extreme poverty, the Central American Bank for Economic Integration (CABEI) approved US$100 million to implement the "Credit Program for Agribusiness and Rural Cooperatives in the Republic of Honduras”, which is aimed at strengthening the productive and associative skills of micro, small and medium-size producers and entrepreneurs integrated into rural cooperatives, as well as facilitating access to credit on favorable terms to increase food security and the development of the country's agricultural and agroindustrial sector.
This operation will benefit 4,354 micro, small and medium-sized producers, especially women, through the Banco Nacional de Desarrollo Agrícola (BANADESA), who will have access to credit and technical assistance services to establish new employment opportunities, improve their productivity levels and market agrifood products under competitive and sustainable conditions. Production areas with high commercialization potential will also be boosted on nearly 7,214 hectares.
In turn, 2,007 new rural savings and credit cooperatives will be strengthened nationwide through the provision of productive capital, training and technical assistance, promoting entrepreneurship among participating families through the implementation of projects that will enable them to produce on their plots of land and, thus, guarantee with better yields the sustenance and food and nutritional security of their households.
These initiatives, which on average will benefit more than 355,000 Hondurans, will be implemented by the Solidarity Network Program and BANADESA, with the support of the National Service for Entrepreneurship and Small Businesses (SENPRENDE), the National Program for Sustainable Rural and Urban Development (PRONADERS), as well as the Directorate of Agricultural Science and Technology (DICTA).
The US$100 million operation is financed through the redirection of a previously approved loan for US$75 million plus a new CABEI loan for US$25 million. This project is aligned with the Human Development Strategic Axis of the 2020-2024 Institutional Strategy and with Pillar 3 of the Honduras 2022-2026 Country Strategy "Promoting Sustainable Competitiveness," which focuses on expanding access to financing for micro, small, and medium-size enterprises (MSMEs). It is also expected to contribute to the Sustainable Development Goals (SDGs), specifically SDG 1 End Poverty, 2 Zero Hunger and 3 Health and Well-being.
CABEI financing provides favorable conditions for the country and has resources from the Program for the Reduction of Poverty and Economic and Social Exclusion (PRPEES), which grants highly competitive financial conditions with a 25-year term and a 5-year grace period.