CABEI approves US$50 million to the Republic of Argentina to reinforce actions derived from the international health emergency
This funding is expected to provide coverage for an estimated 2.6 million direct beneficiaries, including inmates, prison health personnel and inhabitants in the health units' area of influence.
Tegucigalpa, October 13th, 2020 -The Central American Bank for Economic Integration (CABEI) approved a US$50 million financing in favor of the Argentine Republic for the Program to Strengthen Health Infrastructure for Penitentiary and Border Health Units, within the framework of the measures implemented by the COVID-19 emergency in that South American country.
"CABEI's priority is to provide support to its partner countries and thereby strengthen health systems, sustain the private sector, and boost economic recovery. The Bank's health response is directed to the emergency containment and mitigation needs to save lives, said CABEI's Executive President, Dr. Dante Mossi.
The operation is part of the Emergency Support and Preparation Program for COVID-19 and Economic Reactivation approved by CABEI, specifically of its third component, Credit to Finance Public Sector Operations. This program aims to provide financial resources for rapid disbursement to the Central American Integration System and other countries outside the region to finance operations for the prevention, detection, and treatment of COVID-19, and to mitigate its economic impact on the countries.
The loan approved to the Republic of Argentina will finance the purchase and installation of sanitary modules and their respective equipment for approximately 30 Sanitary Isolation Centers (CAS in Spanish) in an equal number of prisons and 13 Border Health Units (BHU in Spanish), which is expected to provide total coverage to an estimated 2,581,351 direct beneficiaries, including inmates, prison system staff, and people in the BHU's area of influence.
The credit was approved for a term of up to 20 years, including up to five years of grace period and a six (6) month LIBOR interest rate, which will be reviewable and adjustable on a semi-annual basis, plus a margin established by CABEI that will initially be one hundred and seventy-five (175) basic points.