Taiwan will provide US$40 million in loans to four of its diplomatic allies in Central America to help them fight coffee rust. Coffee is the most important industry and export product for Central American countries. Coffee rust is the most devastating disease that can afflict coffee plants.
Taiwan's International Cooperation and Development Fund (ICDF) signed a 20-year loan agreement with the Central American Bank for Economic Integration (CABEI) in December last year.
Under the agreement, ICDF and CABEI will each provide US$40 million in loans to Honduras, Nicaragua, El Salvador and Guatemala. The money will then be lent to coffee farmers in the four countries through commercial banks or coffee associations.
The program also covers a technical assistance plan to help the coffee industry chain in the four countries to set up disease preventative measures and operations management. Taiwan’s foreign ministry will spend US$3.5 million while the CABEI will spend US$2.5 million in the plan.