At the beginning of September of this year, the authorities of the Central American Bank for Economic Integration (BCIE) and the Republic of China (Taiwan) signed two loan contracts to finance economic reactivation operations for a total amount of USD 130 million, equivalent to more than 1,300 million lempiras.
One of the contracts signed is for up to USD 50 million, which will allow BCIE to finance the rehabilitation or construction of shelters, clinics and hospitals along with their equipment, as well as the purchase of medicines and supplies needed for the prevention and treatment of COVID-19 in Honduras.
The second contract signed for an amount of up to USD 80 million will allow CABEI to finance the working and investment capital needs of micro, small and medium enterprises, this because for more than five months many of the companies have had financial difficulties and many jobs were closed, and this contract signed between CABEI and the Republic of China Taiwan is to promote the restoration of these companies and the generation of new jobs.
However, only MSMEs that are engaged in the production sectors of the agri-food chain, renewable energy, energy efficiency, hotels and tourism, construction, media, trade, and service providers are eligible.
These loans are expected to achieve both objectives, since since the beginning of this crisis these two areas of health and SMEs have been seriously affected. Health due to the lack of inputs and hospitals and SMEs due to the limitations of mobilization and economic inactivity of the country.
Managing Partner
García & Bodán
Honduras
*This article was written with the support of Blanca Colomer, Law Clerk.