World Bank Offers Costa Rica
us$500 Million To Face Economic Crisis
The World Bank has offered to give Costa Rica a us$500 line of
credit to face the economic downtown to be used to aid those
affected by the international financial crisis.
The vice-president on the international organization, Pamela Coz,
met yesterday with Costa Rican president, Oscar Arias and the
ministro de Hacienda, Guillermo Zúñiga, at Casa Presidencial to
discuss the loan.
Minister Zúñiga said at a press conference yesterday that the
repayment terms and interest rates have yet to be negotiated, adding
that he is sure it will under "favourable conditions".
For her part, Cox added that the World Bank is a partner in Costa
Rica to finance education, competitive and infrastructure projects.
Cox will now report to the directors of the World Bank at the April
meeting to tell the board of Costa Rica's acceptance, when the
credit would then be available.
The World Bank has already lent the country us$65 million dollars to
help those affected by the January 8, 6.2 magnitude earthquake and
to rebuild the damaged infrastructure. The loan is part of the World
Bank's Catastrophe Deferred Drawdown Option (CAT DDO) program aimed
at providing a source of immediate financing in the aftermath of a
major natural disaster.
The CAT DDO acts as a source of bridge financing that may be
disbursed partially or in full if the country declares a state of
emergency as a result of a natural disaster. This will allow the
country to maintain its development programs while mobilizing other
sources of funding to address the emergency.
The World Bank has also approved another us$72.5 million dollar loan
to revitalize the port city of Limón and to modernize the Limón and
Moin ports. That loan has yet to be approved by the country's
legislators. |
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