The announcement was made by Hugo Llorens, U.S. ambassador in Honduras.
’It is not fair to isolate Honduras. In Washington, we are beginning the process to unfreeze economic aid for the country’, said Llorens, at a press conference with President Porfirio Lobo.
Economic assistance to Honduras was suspended seven months ago, as a way of forcing the de facto government to reinstate President Manuel Zelaya.
The project is expected to benefit 5.500 small and medium coffee growers from the country's north.
Dubbed 'Access to specialty coffee markets', the project will provide technical support to improve coffee production.
"Specialty coffees, also known as differentiated, include 'gourmet' coffee, 'just market' coffee, and other varieties like the winners of the Cup of Excellence award.
The IMF recommended Nicaragua to strengthen its governability and business climate, in order to receive external support and improve its growth perspectives.
After finishing the second and third revision of Nicaragua's economy, IMF remarked: "Nicaragua's economy has been negatively affected by the world crisis and domestic uncertainty. A reduction is expected for 2009, due to lower internal and external demand, which translates into less exports, remittances and investment. Political authorities have so far focused on supporting internal demand and protecting the financial system from global threats".
After the political agreement, the country hopes to restore international loans and cooperation estimated at $739 million.
The financial blockage was imposed by the United States, the European Union and Venezuela, together with financial institutions such as IMF, WB, IDB and CABEI, after the political events of June 28th.
Amílcar Bulnes, president of the Honduran Council for the Private Enterprise (Cohep), argued about the "need to not mix political conflicts with economic matters. Bulnes declared that, if so is decided, Honduras could remain a member of Petrocaribe. Its participation was suspended by Venezuela on June 28".
$684 million in projects are on hold in Honduras, due to IDB and WB freezing financial cooperation with the country.
38 projects are awaiting $456.7 million in funding from the Inter-American Development Bank. Likewise, the World Bank has 17 active projects, with $227.4 million to be disbursed.
An article in Laprensahn.com discusses the measures taken by these international organizations: "These decisions impact negatively in the public investment program. 360 projects were approved for 2009, requiring $12.6 billion in investment. Out of this, 32.4% ($4.1 billion) was to be funded with external resources. All external cooperation was paralyzed after the second semester".
Denmark's aid to the country will be reduced from $34.6 million in 2009 to $26 million in 2010.
Aid will be modified in favor of 'the private sector and the civil society, including NGO and independent media", at the expense of the State, said Ulla Toernaes, Danish Cooperation Minister.
"Copenhague will 'closely watch' the situation, to 'ensure' that Danish money goes to projects that benefit the population, warned the minister, who said she was ready to 'review and possibly freeze aid' if the need arises", reported Nicaraguan newspaper El Nuevo Diario.
Restoration of the terminated assistance will be predicated upon a return to democratic, constitutional governance in Honduras.
The Department of State announces the termination of a broad range of assistance to the government of Honduras as a result of the coup d’etat that took place on June 28. The Secretary already had suspended assistance shortly after the coup.
By refusing to consider what happened as a coup d'état, the U.S. avoids imposing economic sanctions on Honduras.
Even though Obama's administration maintains its position in favor of Zelaya's re installment as president, it has avoided declaring the Honduras situation as a coup d'état. This is a decision in itself, as it permits the maintenance of economic assistance programs for the impoverished country.
The German Embassy in Nicaragua assured the country it will finance the projects to supply water to Granada and prevent the pollution of Lake Nicaragua.
Resources for the "Improvement and application of water and sewage for the city of Granada” will be provided by the German government, as was confirmed by the German Embassador in Nicaragua, Betina Kern.
In 2009, Germany will maintain aid to Nicaragua and focus on water, the environment and governance.
The German ambassador in Managua, Betina Kern, signed a $1.5 million agreement yesterday to rehabilitate technical education institutes.
During the signing of the agreement, the diplomat indicated that aid to Nicaragua which in recent years has averaged $30 million will be maintained in 2009.
The United States announced the donation of the funds for an educational program for the 2009-2011 period, which will benefit thousand of families.
The American Embassy explained in a short release that the so called "International Feeding Program for Child Education and Nutrition" will be executed during the next three years by the private Share Guatemala Foundation.