The Government has announced that will negotiate international loans for $920 million for road construction.
The Ministry of Communications, Infrastructure and Housing (CIV) said it would be looking to obtain credit with international banks in order to expand three stretches of highway which go towards border crossings. Alejandro Sinibaldi, head of the CIV, confirmed that the three loans could materialize next year.
Guatemala's Congress has approved a loan of $119 million from the CABEI and another from BNDES of Brazil for $280 million, for the expansion to four lanes of the highway to the Pacific.
The Ministry of Communications will be the executor of the road project to be financed with the two loans.
The expansion to four lanes will be on the route from Cocales, Suchitepéquez, to Tecun Uman, San Marcos.
The country has made an agreement with the BCIE for a 75 day extension to the loan which expired on 25 August and has not yet been approved by congress.
The credit was designed to support the ministries of Health and Education, to be implemented in this year, 2011.
The Finance Minister, Alfredo Rolando Del Cid Pinillos, said: "We managed to extend the BCIE funds for two and a half more months.
In 2010, the Central American Bank for Economic Integration (CABEI), will lend $1.038 million for development projects.
$370.8 million are earmarked for Costa Rica, $199.8 million for El Salvador, $173.2 million for Guatemala and $114.9 million for Nicaragua.
As for Honduras, Alfredo Ortuño, CABEI's director, explained that "...disbursements are on hold until the Central American Integration System (SICA) revokes a ruling enacted after the Honduran coup d'état. Nevertheless, the bank has earmarked $123.6 million to finance projects in the country".
Faced with a reduction in crops, the Agriculture Ministry is negotiating a loan with BCIE.
$40 million would be used for planting basic grains and the remaining $10 would be used in financial support for growers.
"With the same purpose, the Institute of Science and Agriculture Technology (ICTA), will launch an improved corn seed, its main feature being that it contains 90% of the nutrients of cow milk", reports Sigloxxi.com.
The Bank said that it will not stop injecting capital, especially capital that is used for micro, small and medium companies.
Roberto Serrano, vice president of the Central American Bank for Economic Integration (BCIE), said in an article published on LA PRENSA GRAFICA.com: “Although the international economic environment is tough and funds are not flow as much as before, we have the ability to continue capturing money as well as to continue injecting resources toward the micro, small and medium companies sector."
The regional financial entity revealed that the money will be handed over to the central banks to ease liquidity problems.
Details of the emergency program will be presented next Wednesday, November 19; however, Nick Rischbieth said that the $500 million will be divided in two lines of credit: one for liquidity and one for emergency.
The plan is addition to the request made by the leaders of the countries that make up the Central American Integration System (SICA) which request $200 million for each country.
In times of credit crunch from the usual sources, it is appropriate to remember that there are other alternatives for financing projects.
The Andean Development Corporation (CAF), the International Finance Corporation (IFC) of the World Bank, the Inter-American Investment Corporation (IIC) of the IDB, and the Central American Economic Integration Bank (BCIE) are all sources of financing for high impact development projects by the private sector which are highly unused by our bankers and businesses.