CABEI grants US$171.65 million for low-income housing to the Republic of Nicaragua
7,000 families in extreme poverty and 11,660 low- or moderate-income families will benefit directly.
Managua, April 01, 2020.- Today, the Central American Bank for Economic Integration (CABEI) approved a loan amounting to US$171.65 million to the Republic of Nicaragua to finance the Program denominated, "National Social Interest Housing Program".
The program seeks to contribute to improving the living conditions of low-income Nicaraguan families living under conditions of extreme poverty through the construction and/or procurement of decent, safe and easily financed housing solutions, which will directly benefit 7,000 families living in extreme poverty with a subsidy scheme and 11,660 families with low or moderate income with a subsidy/credit scheme, administered through one or more bank trusts.
Participants in the Program include private sector housing developers and builders, as well as banking institutions in charge of trust management.
To that end, CABEI Executive President, Dr. Dante Mossi, stated that, "CABEI recognizes the importance of having a dynamic and streamlined housing sector that fosters sustainable development in the country. Likewise, the Bank's contributions are aimed at fostering economic growth and employment generation.”
The financing will be distributed as follows: First, US$52.82 million with have a 25-year term, 5-year grace period and indicative interest rate of 1.5% under the Program for the Reduction of Poverty and Economic and Social Exclusion (PRPEES). Subsequently, US$118.83 million with a 25-year term, 5-year grace period and indicative Libor rate of 6M plus 350 basis points within the framework of the Central American Sustainable Housing and Habitat Development Program (VIDHAS).
The loan targets the promotion of social housing access to disadvantaged or resource-poor segments of the population.