Guatemala: Poor Implementation of External Loans for Public Works

Up until September government institutions had only executed 13% of the total amount of funding provided by the Inter-American Development Bank.

Thursday, October 6, 2016

Although changes were made in the legislation to accelerate the implementation of funds in various state entities, there are still obstacles to streamlining processes.

Jairo Flores, chairman of the Finance Committee in Congress, said that of the loans granted by the IDB, "... the Ministry of Health has implemented 30% of them, Education 4.3%, Economy 26%, Communications 5.5%; environment, 66%; Secretariats, 0%; obligations which are the responsibility of the Treasury, 17%, and Development, 0% ".

Prensalibre.com reports that "...Victor Martinez, deputy finance minister, said that the low implementation rate is due to the fact that there was a financial and viability reorganization as well as freeing up of blocks when the government took office. In addition, in the coming days, the legislature will find out about a loan application with the IDB for the Ministry of Education for US $150 million to expand school coverage. "



More on this topic

Pension Fund to Finance Infrastructure

April 2016

Up to $372 million of the state pension scheme could be invested in public infrastructure projects in Costa Rica.

Funding public works using Costa Rica's national savings funds saw a new and positive development in matters relating to the management of resources in the economy.

Nicaragua: $55 million for Work on Customs Offices

August 2015

Approved resources from an international loan will be allocated to infrastructure improvements at the customs offices of Peñas Blancas, San Pancho and Guasaule.

One of the purposes of the improvements to be undertaken at the customs offices is to reduce the time it takes to process control of goods in transit, something that Nicaraguan businessmen and the region have complained about repeatedly.

Bureaucracy Delays Implementation of Loans for Public Works

November 2013

In Costa Rica bureaucratic process and the slow pace of legislative approval for loans for infrastructure are key factors in the terrible record for execution of projects.

According to officials from the Ministry of Finance the slow implementation of projects financed by international organizations is due to "bureaucracy related to external credit authorizations and the time the project spends in the Legislature, pending approval," noted an article in Nación.com.

Securitization in El Salvador

May 2012

In the absence of state resources for public infrastructure projects, securitization is an alternative for funding.

El Salvador is in a second phase of securitization, where the focus is on generating assets that can be securitized, and future market opportunities are investment opportunities from financial assets, said the expert Jose Miguel Valencia.

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