CABEI provides US$300 million to reactivate Costa Rican companies affected by the economic crisis
Government of Costa Rica announces the creation of a National Endorsement and Guarantee Fund as well as credit placements of at least US$300 million
San José, August 06, 2020.- The recent approval of the Development Policy Operations Program (OPD) for US$250 million, plus an additional US$50 million from the Central American Bank for Economic Integration (CABEI) Regional COVID-19 Support, Preparedness and Economic Reactivation Program enabled Costa Rica to create a National Endorsement and Guarantees Fund for the economic reactivation of the productive sectors most affected by the crisis.
The Fund, which will support debtors affected by the pandemic, will also provide financing for working capital and debt readjustment to companies and people involved in productive activities.
Its administration will be carried out through the creation of a trust, where the Ministry of Finance will be settlor and the National Insurance Institute (INS) will be trustee; this will allow financial entities to manage operations under special interest rate and term conditions.
CABEI Executive President Dr. Dante Mossi explained that, “Since the start of the pandemic, CABEI has sought ways to support its member countries to face the challenges in both the health and economic fields, and in this specific case the Bank is pleased to have been part of the hard work involved in promptly presenting this bill in order to reach those affected in most need.”
The Government estimates that the new National Endorsement and Guarantee Fund for the economic reactivation and support of debtors affected by the pandemic will provide at least US$300 million in loans to benefit approximately 18,000 companies.