More than 1 million Hondurans affected by natural phenomena will benefit from CABEI-financed Relief Bond
• US$70 million in financing will make it possible to grant vouchers to meet the basic needs of people living in eight departments in a state of vulnerability.
Tegucigalpa, June 29, 2021- In order to improve the income and quality of life of families living in areas affected by natural phenomena in Honduras, the Central American Bank for Economic Integration (CABEI) approved US$70.0 million in financing for the Bono de Alivio a Familias Vulnerables Afectadas por Fenómenos Naturales Producto del Cambio Climático (Relief Voucher for Vulnerable Families Affected by Natural Phenomena resulting from Climate Change) program.
Through this program, the Honduran government will be able to provide a one-time monetary compensation of up to 7,000 lempiras to 234,579 families, equivalent to 1,142,400 people, 51% of whom are women, living in extreme poverty and located in the departments categorized as most at risk and affected by natural phenomena due to climate change.
"I am pleased to announce this support to the Republic of Honduras focused on addressing the basic needs and social development and welfare of families affected by the effects of climate change, who through this bond will be able to improve their income to cover their basic needs with the acquisition of consumer goods," said CABEI Executive President, Dr. Dante Mossi.
For his part, the Secretary of State in the Office of Finance of the Republic of Honduras, Mr. Luis Fernando Mata, highlighted: "the approval of this new financing is part of the response strategy of the Government of Honduras to support families that have been directly affected by the effects of natural phenomena. The granting of this bond will support the reactivation of the local economic dynamics of those municipalities and communities that had already been affected by the effects of the COVID-19 pandemic and have now faced the climate challenge".
These resources will be executed through the Secretariat of Development and Social Inclusion (SEDIS), in coordination with other governmental and local agencies in charge of supporting the population in vulnerable conditions.
The loan was approved for a 20-year term with a 5-year grace period, at an interest rate of 2.4% plus 6-month LIBOR.
The program is aligned with the objectives of CABEI's Central American Resilient Reconstruction Program and is framed within CABEI's current 2020-2024 Institutional Strategy, specifically the Human Development and Social Inclusion Strategic Axis. In addition, it contributes to the Sustainable Development Goals (SDGs) in health and wellbeing.