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NI-M1038 : Innovative Models for Providing Long-term Financing to Coffee Producers in Nicar

Project Status: Closed

The most recent roya outbreak has severely affected Central American coffee producers with about 50% of the total coffee growing area affected by this fungus. The incidence rate varies from country to country but it is estimated between 20-40% in Nicaragua and Honduras alone. Roya is decreasing income levels for Central American coffee producers and Small Enterprises (SEs) posing a real threat for its financial stability and survival. With renovation costs estimated between US$600 to US$3,000 and a timeframe of 3-4 years before newly planted coffee trees start producing beans, there is an urgent need to provide a well-rounded solution that incorporates long term financing, a solution that is not currently provided by the formal financial sector. ECOM is a solid player that has been in the coffee business for decades, dealing directly with farmers and providing short term loans at flexible terms to better match the seasonality of the business. MIF would be providing technical assistance to improve the credit processing capabilities of ECOM/Atlantic.

Project Detail

Project Number
NI-M1038
Project Country
Nicaragua
Project Sector
PRIVATE FIRMS AND SME DEVELOPMENT
Project Subsector
SMALL AND MEDIUM ENTERPRISE
Project Type
Technical Cooperation
Environmental and social impact category
C
Project Status
Closed
Operation Number
ATN/ME-15017-NI

Financial Information

Project Number
NI-M1038
Project Status
Closed

IDB Financing

Financing type
TCN
Fund
Multilateral Investment Fund II (MIF) -
Reporting currency
USD - United States Dollar
Reporting date
Aug/31/2021

Roles & Responsibilities

Contract signature date
Jan/29/2016

Project Information

Total Cost
USD 546,305
Country counterpart financing
USD 219,600
Amount
USD 326,705

Implementation

Title
Type
Project Number
Date Published
Project Performance Monitoring Reports
NI-M1038
June 29, 2017
Project Performance Monitoring Reports
ATN/ME-15017-NI;NI-M1038
November 01, 2016