Nicaragua: $24 Million More for Reforestation

The Central American Bank for Economic Integration approved a $24 million extension of an existing line of credit, funds that will be invested in the implementation of sustainable production models and forest management and reforestation.

Thursday, May 27, 2021

These funds will be used to increase financing for the "Bio-CLIMA Project: Integrated Climate Action to Reduce Deforestation and Strengthen Resilience in the Bosawas and Rio San Juan Biosphere Reserves" on Nicaragua's Caribbean Coast.

According to the Central American Bank for Economic Integration (CABEI), the project will support 8,417 productive units in which sustainable production, forest management and reforestation models will be established in an area covering an estimated 603,035 hectares.

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The communiqué adds that "... it will also allow the country to increase its carbon absorption capacity through the promotion of agroecological production of permanent crops under shade, the reduction of extensive grazing and the introduction of silvopastoral and cacao agroforestry systems, among other actions."

The conditions of this financing, as a result of the blending of CABEI and GCF loan resources, result in a fixed annual interest rate of 0.81% and a term of up to 40 years, including a 10-year grace period.

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