27 September 2011: The International Fund for Agricultural Development (IFAD) has signed a new US$15 million loan agreement with the Government of Nicaragua, seeking to reduce poverty, boost rural development and protect the environment on Nicaragua’s Caribbean coast.

Signed on 27 September 2011, the loan is to support Nicaragua’s five-year Rural Development Programme for the Caribbean Coast (NICARIBE). NICARIBE aims to benefit about 100 rural communities in the seven territories that comprise Nicaragua’s North Atlantic Autonomous Region (RAAN) and South Atlantic Autonomous Region (RAAS). These communities have large indigenous and Afro-descendant populations, and very high rates of poverty, in some cases over 70 percent.

The Programme seeks to directly benefit 10,580 households by helping them produce goods with market value, while promoting the sustainable use of natural resources. This aspect of the Programme will particularly focus on providing new economic opportunities for women, youth and indigenous communities. NICARIBE also will seek to strengthen the organization of the beneficiaries, as well as the capacity of the seven territorial governments to govern and manage development projects.

NICARIBE will be implemented by the Rural Development Institute and regional and territoiral governments of RAAN and RAAS. IFAD is providing US$8 million for the project, the Central American Bank for Economic Integration (BCIE) is providing US$4 million, and the Government of Nicaragua US$2 million, with the rest coming from various counterparts. [IFAD Press Release]