The impact of high oil prices on the Honduran economy was on the agenda when a technical mission met with authorities from the central bank and finance ministry.
Edwin Araque, governor of the central bank, said that the impact of higher fuel prices was sure to be reflected in the nation's international reserves.
The United Nations Food and Agriculture Organization (FAO) is donating US$100 million to boost Nicaragua's recently commenced crop cycle.
FAO representative Armando Cerrato said the bulk of the money would be used to help small farmers to buy seeds for their rice and corn crops. Seed prices have surged as demand led by China and India contributes to a growing world food crisis.
Fidencio Alvarez abandoned his bean and corn farm in southern Honduras because of the rising cost of seeds, fuel and food. After months of one meal a day, he hiked with his wife and six children to find work in the city.
``We would wake up with empty stomachs and go to bed with empty stomachs,'' said Alvarez, 37, who sought help from the Mission Lazarus aid group in Choluteca in January.
Food security of Panama and other Central American countries will be guaranteed with the support of the United Nations' Food and Agriculture Organization (FAO).
Implementing a regional program, the FAO will distribute seeds, tools and machinery to Central American countries to promote agricultural production, Panamanian Agriculture Development Minister Guillermo Salazar said Monday.
Honduras launched a $119 million plan on Tuesday to ramp up agricultural output this year to mitigate rising food prices in the impoverished Central American nation.
Agriculture Minister Hector Hernandez said Honduras aims to increase annual corn production by almost a third to up to 23 million 100-pound (46-kg) bags this year, compared to 2007.
The government also hopes to lift bean production slightly to 2 million 100-pound bags in 2008.
The Wordl Bank project supports the update of the Government’s Poverty Reduction Strategy under the National Human Development Plan, which has an emphasis on private sector development.
During the past six years, Nicaragua has experienced macroeconomic stability with steady positive GDP growth, low inflation, stable exchange rates and declining interest rates.