The National Assembly has approved a loan from the CABEI to build water and sanitation systems, storage tanks, septic tanks, sewers and household connections.
From a statement issued by the National Assembly of Nicaragua:
Following the adoption of a decree for a $30 million loan signed between the Republic of Nicaragua and the Central American Bank for Economic Integration (CABEI ), 121 rural municipalities will benefit from the implementation of the "Project for Sustainability Rural of Water and Sanitation"
Ram Power Corporation and Polaris Energy Nicaragua secured a loan from CABEI to enlarge San Jacinto Tizate geothermal power plant.
With these $20 million from the Central American Bank for Economic Integration, the Canadian companies have complete the $77 million funding required for expanding the power plant.
"The facility now has an electrical output of 10 MW.
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".
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 Central American Bank for Economic Integration will disburse the loan for "the strengthening of the country's financial system.
The president of the Central Bank of Nicaragua, Antenor Rosales, said, according to Unionradio.net: "$100 million will be available to any bank that needs liquidity.
The other $100 million "are for the guarantee of deposits" by Nicaraguans, he added.
At the request of the government, the BCIE approved the loan for which the country will provide the equivalent for the construction of two roads, in addition to the Millennium Challenge Account.
The first of the two highways will join La Paz Centro in Malpaisillo with Villa 15 de Julio, to form an alternate route to El Guasuale; the second road is from Nejapa, Izapa to Puerto Sandino.
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.
The Central American Bank for Economic Integration (BCIE) granted a $2 million credit to Fundeser to finance small farmers and micro businessmen from both rural and urban areas.
This loan was granted to the Foundation for Socio-Economic and Rural Development and is a part of the expansion of a previous contract. Fundeser has a network of agencies in 22 municipalities.