Government of Costa Rica Takes Out Loans It Doesn't Use

Interest and fees are paid for $781 million in outstanding loans, of which only $41 million have been used, 5% of the total.

Tuesday, October 1, 2013

The country pays interest and fees for a total of nine loans that have hardly been used. "Up until August, the Government paid a total of $3.8 million in commitment fees and interest on loans that were first implemented in the last four years ...", reported Nacion.com.

Even the General Comptroller's Office has criticized the low implementation of these loans in recent years. Some of the institutions that granted loans to the country are the Central American Bank of Economic Integration (BCIE), the Inter-American Development Bank (IDB) and the Japanese Bank for International Cooperation.

According to Jordi Prat, Vice Minister of Investment and Public Credit, ... payments for every loan starts six months after the first disbursement is provided. "Is is a long process. First approval must be given in Congress which in record time is six months. Then a tender process is started which is often delayed by appeals," he added.

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