CABEI allocates resources for imminent risk projects credit in Costa Rica at an interest rate of 1.5%.
● The German Development Bank KfW is also incorporated as a cofinancier within the loan, allowing for an additional reduction in the financial conditions of the loan by US$700 million.
San José, November 2nd, 2023 - In order to protect the lives of Costa Ricans and improve the financial conditions of the US$700 million "Emergency Program for the Comprehensive and Resilient Reconstruction of Infrastructure" approved by the Central American Bank for Economic Integration (CABEI), this institution was able to co-finance US$109.5 million with very low interest rates that will allow a lower financial cost for the country.
Through its Reduction of Poverty and Economic and Social Exclusion Program (PRPEES), which the multilateral development agency created to support Central American operations aimed at meeting the investment needs of the region's poorest and most excluded communities, $42.8 million will be financed at a fixed interest rate of 1.5% over 25 years.
It also secured the participation of the German development bank KfW with a US$66.7 million co-financing from the "Green Recovery Program in Central America," a Central American cooperation agreement between CABEI and its financial ally KfW to support financing for sustainability, resilience and climate change. This financing will generate a 0.75% interest rate reduction on the applicable margin.
The president of the Republic, Rodrigo Chaves, made the announcement at Tuesday's press conference, in which he mentioned: "we recognize and appreciate the efforts that CABEI is making to significantly reduce the financial costs of this important loan, and now we expect the collaboration of the deputies to achieve the approval of the resources that will allow us to address urgent works, prevent road tragedies, travel safely on the train, and hundreds of students to have the facilities they deserve to return to the classroom".
Nogui Acosta, Minister of Treasury and CABEI Governor of Costa Rica, said, "We thank CABEI and Germany's KfW for joining this initiative with which we hope to protect the population, generate employment and improve our educational, road, logistical and productive infrastructure. The incorporation of these two new sources of resources in this important credit for our country will also translate into better financing conditions for the benefit of our public finances and the Costa Rican population”.
"At CABEI, as the main development bank in Costa Rica, we are committed to the country and its efforts to protect human life and improve infrastructure, especially for those who are most in need, which is why we worked hard to achieve this significant improvement in the financial conditions of this important loan for the country" concluded CABEI's chief country officer in Costa Rica, Álvaro Alfaro.
The "Emergency Program for the Integral and Resilient Infrastructure Reconstruction" contemplates the rehabilitation, reconstruction and repair of 502 structures, including roads, bridges, railways and educational centers, in imminent risk or in a state of emergency, which can be consulted on the website of the National Commission for Risk Prevention and Emergency Attention (CNE) No more risks.
