El Salvador: $80 million to Renovate Coffee Plantations

The Ministry of Agriculture foresees having the resources available in April, once the Legislature approves the disbursement by the BCIE.

Thursday, February 15, 2018

A new government attempt to renovate coffee plantations gained momentum in December last year, after the Legislative Assembly approved a reform to the Law to Create the Coffee Production Support Trust, to facilitate access to financing for coffee growers.

Orestes Ortez, head of MAG, explained to Elmundo.sv that "... the funds come from a loan from the Central American Bank for Economic Integration (BCIE). The official stated that the MAG has already completed the preparation phase for this loan and the BCIE has promised to present this month's proposal to its board of governors, the bank's highest authority, to approve the financing."

"... By law, once the bank endorses the financing, the Ministry of Finance submits the request for authorization to the Legislative Assembly, where it must be approved with 56 votes in favor.  After receiving the endorsement, the Treasury completes the negotiation and sends the contract to the Legislative Assembly to be ratified.  'As there is a political agreement with the Mesa del Café (Coffee Work Table), we hope that this will be a normal procedure and there will not be any obstacles', Ortez said."

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Funding for Coffee Plantation Renovation Delayed

November 2019

The $286 million credit granted by CABEI to renovate coffee plantations in Guatemala has not yet been approved by local authorities, so resources would only be available in the second half of 2020.

The financing approved at the beginning of November by the Central American Bank for Economic Integration (CABEI) will be used to renovate the country's coffee park by replacing plants damaged by pests and diseases or older plants that can reverse productivity losses because of the aging of plantations and the effects of rust, estimating the renewal of approximately 19.9% of the Guatemalan coffee park.

Guatemala: $286 Million for Coffee Sector

November 2019

The Central American Bank for Economic Integration approved a loan, which will be used to finance a program to renovate the country's coffee farm.

The financing is destined to the renovation of the coffee park of the country, through the substitution of plants damaged by plagues and diseases or with greater age that allows to revert the losses of productivity by the aging of the plantations and the effects of the rust, estimating the renovation of approximately 19.9% of the coffee park of Guatemala, informed the financial entity.

Coffee: $86 Million in Loan Advances

March 2019

The financing contract for the coffee renovation program, which the Salvadoran government plans to sign with CABEI, received its first endorsement in the Legislative Assembly.

In August 2018, it was reported that the funds will be used to respond to the challenges of the coffee sector in El Salvador, supporting the renewal of 20,777,4 blocks of the crop, also contributing to the transfer of sustainable technologies, increasing resilience capabilities and improving the institutional framework related to coffee.

Funding to Renovate Coffee Plantations Confirmed

March 2018

The Salvadoran government has announced that CABEI has approved an $80 million loan to finance the coffee plantation renewal plan.

From a statement issued by the Ministry of Agriculture:

The Minister of Agriculture and Livestock, Orestes Ortez, reported that the Central American Bank for Economic Integration (BCIE) approved an $80 million loan requested by the Salvadoran government, aimed at renovating the country 's coffee plantations and strengthening this productive sector.