Funding for Coffee Plantation Renovation Delayed

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.

Friday, November 15, 2019

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.

Regarding the pending loan process, reports that "... The Monetary Board must issue an opinion on the monetary effect of contracting the loan and then the Executive must transfer it to the Congress of the Republic for the subscription to be approved. From this account the authorities estimate that it will be for the second semester that there will be the availability of resources for coffee growers."

You may be interested in "Coffee: Regional Sales up to March 2019"

Luisa Fernanda Correa, manager of the National Coffee Association (Anacafe), explained that "... with this loan and the extension approved last April of the financial support trust term for Guatemalan coffee producers, they contribute to the reactivation of the economy and development of the country."

The projection for the 2019-2020 harvest is to reach between 4.4 and 4.5 million quintals, but the following could be less because of the effect of plantation management.

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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 to Renew Plantations

August 2018

With a loan from the BCIE, the Salvadoran government intends to finance a coffee renewal program, which would cover some 21,000 manzanas of crops.

The Central American Bank for Economic Integration (CABEI ) reported that the funds will be used to respond to the challenges of the coffee sector in El Salvador, supporting the renovation of 20,777.4 manzanas of the crop, contributing to the transfer of sustainable technologies, increasing the capacity of resilience and improving the institutionality 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.

El Salvador: $80 million to Renovate Coffee Plantations

February 2018

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

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.