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The Finance and Special Budget Committee of the Legislative Assembly issued a favorable opinion to extend the validity of the Fideicomiso Ambiental para la Conservación del Bosque Cafetalero (FICAFE), for five years. FICAFE is a financial tool created to support the salvadoran coffee sector in the face of various economic and production challenges.
The proposal seeks to extend the trust fund’s duration beyond the originally established maximum term. Since FICAFE was created in july 2001 and trust funds have a maximum term of 25 years according to the Commercial Code, its operating period is nearing its end. With the reform, the mechanism would continue operating until 2031.
If approved by the full legislature, the extension will allow coffee producers to continue accessing the financial benefits and support programs provided by the trust fund, especially during times of impact from weather events, pests, or fluctuations in international coffee prices.
During the review of the initiative, the deputies met with representatives from the Banco de Desarrollo de la República de El Salvador (BANDESAL), the institution responsible for administering the trust. Among those present were the Corporate Governance manager, Luis Montoya, and the Funds and Trusts manager, Andrés Rosa.
Montoya explained that the request stems from the need to adapt the validity of the financial instrument to the current realities facing the sector. He indicated that coffee producers have faced various challenges in recent years, making trust an important tool for providing financial support and guidance.
The FICAFE trust was created to manage channel resources aimed at strengthening the national coffee industry. Its functions include providing liquidity to producers, promoting plantation renewal, and supporting the sector’s recovery from problems such as pests, adverse weather events, and crises resulting from the drop in coffee prices in international markets.
The initiative will be sent to an upcoming plenary session, where the deputies will decide whether to approve the reform that would allow this support mechanism to remain in effect until 2031.
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