TAIPEI (Taiwan News) — Taiwan’s Ministry of Foreign Affairs (MOFA) on Wednesday confirmed a potential loan of US$300 million to Honduras, for the Latin American nation’s health and education projects.

The ministry has negotiated with Taiwan banks to offer the concessional and commercial loan of US$300 million (NT$9 billion) upon the request of the Honduran government, according to MOFA Spokesperson Joanne Ou (歐江安), reported the Liberty Times. Ou declined to reveal details on how Honduras would utilize the funding, adding the government’s decision was made to facilitate the ally’s social development and improve the lives of Hondurans.

According to Honduran media, the loan will support the country’s budget, with some funds allocated to “strengthen the infrastructure in health and education,” said Honduran finance minister, Rocío Tábora. The loan would be within the limits set by the government’s financing strategy and debt sustainability policy, she emphasized.

The request of the loan by the Honduran government has been approved by its Congress. The Taiwan authorities will assist the Honduran authorities in proceeding with the loan application, said Ou. She declined to discuss the bank likely to provide the loan, or the content, interest rates, and conditions of the possible loan.