CABEI to channel resources for middle-class housing in Costa Rica
US$50 million will be disbursed in direct investments for the least-served segment of the financial sector.
San José, Costa Rica, November 10, 2016. The Central American Bank for Economic Integration (CABEI) will allocate fifty million dollars (US$50,000,000.00) for the purchase, construction, improvement or expansion of housing and the development of sustainable housing projects for the middle class in Costa Rica.
CABEI’s Director for Costa Rica, Dr. Alberto Cortés Ramos, stated that, “The new credit line is part of a CABEI effort to promote sustainable housing in Central American through the Housing and Sustainable Habitat Development Program (PRO-VIDHAS), which will provide US$550 million (Five hundred and fifty million US dollars) in financing for Central American countries to promote prosperous and sustainable cities; the integral improvement of neighborhoods; the revitalization of historic centers; and the development of sustainable housing.”
For the execution of the program in Costa Rica, a trust was structured with Banco Crédito Agrícola de Cartago (Bancredito), as a fiduciary entity. Bancredito will channel resurces to Mutual Cartago de Ahorro y Prestamo (MUCAP) and Grupo Mutual in order for Costa Ricans to access the new credit line under the program’s terms.
The loan signing ceremony for the Housing and Sustainable Habitat Development Program in Costa Rica (PROVIDHAS-CR) was held today with the participation of Mrs. Ana Helena Chacón Echeverría, Costa Rican Vice President; Mrs. Ana Cristina Trejos Murillo, Deputy Minister of Housing and Human Settlements; and representatives from the different financial institutions, developers and individuals interested in the housing sector.
The structuring of PRO-VIDHAS in Costa Rica also meets the priorities of the Solis Rivera Administration, which are set out in the 2015-2018 "Alberto Cañas Escalante" National Development Plan. At the signing ceremony, Costa Rican Vice President Mrs. Ana Helena Chacón Echeverría stated that, "In order to achieve real opportunities, it is necessary to modify the social security paradigm with propositional actions that provide accessible and continuous improvement in the quality of life of inhabitants. We thank CABEI for its valuable contribution to the many families that will benefit from decent housing."
For their part, the financial institutions stated that:
• Mr. Gerardo Porras, General Manager of Bancredito expressed that, "Bancredito is honored by the confidence that CABEI has placed in it to be the fiduciary entity that will administer the trust; the trust will contribute to reducing the country’s housing deficit and to generating sustainable and prosperous cities. Our bank is committed to providing the best services and opportunities to those who require them the most; we are extremely motivated to help out so many people who currently face limitations for obtaining a decent home because they cannot adjust to current credit conditions.”
• Ms. Eugenia Meza Montoya, General Manager of MUCAP stated that, “For MUCAP it is a privilege to have been considered by such a prestigious organization as the Central American Bank for Economic Integration to transfer funds to the sectors and segments that most require them; the resources will be allocated in an innovative and integral manner, not only considering the country’s housing needs but also the generation of sustainable housing projects, urban renovation and the rescue of historic centers. With these resources, we expect to generate an even greater impact that will streamline Costa Rica's social and economic development.”
• Mr. Oscar Alvarado Bogantes, General Manager of Grupo Mutual commented that, "Grupo Mutual currently works through a triple-utility strategy; our activities seek to make positive impacts on the financial, social and environmental fields, connected with a cross-cutting axis of sustainability. It is very important to offer resources to our middle-class clients; the subject of sustainability will be one of the determinants for the credit lines, which will contribute to the country’s growth and generate opportunities for everyone."
PRO-VIDHAS responds to the housing needs of the Central American region, where, according to data from the statistical institutes of the countries, there is a housing deficit of 53%, which means that out of every 10 homes, 5.3 of these lack some sort of infrastructure.
CABEI is committed to continue to strengthen its role as a strategic ally of its member countries by providing financial solutions that contribute to employment generation and increase the wellbeing and quality of life of inhabitants.