CABEI approves US$150 million loan for housing in Honduras
29,500 vulnerable families in the departments of Cortés, Atlántida, Yoro, and Santa Bárbara will benefit from this financing for the rehabilitation, reconstruction, or construction of new homes.
Tegucigalpa, February 24, 2021.- The Central American Bank for Economic Integration (CABEI) today approved US$150 million in financing for the Republic of Honduras to finance the Resilient Housing Reconstruction Program in Honduras for 29,500 vulnerable families.
"For CABEI, it is a priority to offer support to its member countries and thereby contribute to the housing sector reconstruction and recovery process, which has been so severely affected by the damage caused by the meteorological events that occurred in the region. It is important to provide a rapid and effective response to the emergency caused by the ETA/IOTA phenomena," said CABEI Executive President, Dr. Dante Mossi.
The purpose of this program is to support the Honduran housing reconstruction and recovery process through the implementation of rapid and resilient solutions for vulnerable populations affected during the emergency caused by extreme weather events resulting from climate variability.
The loan will facilitate the granting of subsidies for the acquisition, reconstruction, or rehabilitation of housing. In addition, 26 subprojects will be financed, including mitigation works, reconstruction of neighborhoods and basic services, and improvement of shelters in several communities and neighborhoods in the project's intervention area, so that approximately 2,900 homes will be built, and 26,500 affected homes will be rehabilitated, in addition to the construction of 36,900 m2 of spaces for cultural, sports, and recreational purposes.
This operation will contribute to the 2030 Agenda targets for Sustainable Development Goal (SDG 11) that aims to make Cities and Human Settlements inclusive, safe, resilient, and sustainable, by contributing to target 11.1 to ensure access for all people to adequate, safe, and affordable housing and basic services and to improve slums. Furthermore, by contributing to target 11.2 to increase inclusive and sustainable urbanization and capacity for participatory, integrated, and sustainable human settlements planning and management in all countries.
The loan was approved on the following terms: i) up to US$91.2 million for a term of up to 20 years, including a grace period of up to five years and a revisable indicative interest rate of 2.72% (2.5% + LIBOR revisable semi-annually), ii) up to US$58.7 million for a term of up to 25 years, including a grace period of up to five years and a fixed annual interest rate of 1.50% under the Poverty Reduction and Economic and Social Exclusion Program (PRPEES).