The IADB loan to Guatemala for the purpose of "generating more tax revenue" is another example of the current inflation of funding promoted by international bureaucracy to pay the salaries of national bureaucracies.
EDITORIAL
An article by Jose Raul Gonzales in the blog of Guatemala's economic think tank CIEN, reveals one of the many cases in which international financial organizations, supposedly created to help nations develop, engage in financing consulting activities, which end up being just expenses instead of financing real economic sectors.
The funds are part of a total of $ 280 million for social programs.
To support the efforts of Honduras in implementing the Millennium Development Goals, the Central American Bank for Economic Integration (CABEI) disbursed a $ 100 million loan to the country.
The resources of this loan will contribute positively to compliance with six of the eight Millennium Development Goals, and through the different components of the program seeks to eradicate extreme poverty and hunger, support education, reduce mortality child mortality, improve maternal health, ensuring environmental sustainability and promoting gender equality.
The agreement, which expires in March 2012, will enable the country to get immediate access to funds worth $196 million.
An International Monetary Fund (IMF) staff mission was in Tegucigalpa between 7 and 10 September to continue discussions on an agreement between Honduras and the IMF to support the government's economic program. At the close, the mission's chief, Mr. Przemek Gajdeczka, issued the following statement:
Finance Minister William Chong Wong affirmed they will be completely transparent when the International Monetary Fund reviews Honduras’ accounts.
The previous IMF visit to review national accounts, a compulsory process for all member states, was conducted in Honduras back in 2009, when Manuel Zelaya was still president. According to Proceso.hn, the mission “reviewed the numbers and found imbalances in public spending, mismanagement of state companies and noncompliance with the agreement signed with the Fund”.
On May, the board of the IMF could approve it and disburse $18 million, out of $35.6 pledged for 2010.
Antenor Rosales, president of the Central Bank of Nicaragua, stated that the Government successfully passed the fourth revision of its macroeconomic program with the International Monetary Fund (IMF), known as Extended Credit Facility (ECF).
Rosales explained he will soon sing the Letter of Intent, which describes the policies and actions that the government will assume with the IMF to reach a level of economic growth of 2% per year.
Should the country receive a positive grade, IMF would disburse $17.8 million out of the $35.6 million it has earmarked for Nicaragua in 2010.
Antenor Rosales, president of the Central Bank of Nicaragua, told local media that the International Monetary Fund will review the situation of the nation’s economy.
Rosales commented that this revision will include quantitative goals, energy rates, status of the Social Security Institute, a reform to the Central Bank law, budget reforms and the 2010 budget.
The World Bank Board of Directors approved a USD 350 million Development Policy Loan (DPL) for the government of Guatemala.
With the objective of continuing to support the country’s efforts to improve its fiscal and institutional policies and mitigate the impact of this global crisis.
The purpose of this loan is to contribute to the government’s efforts to improve macroeconomic stability, governance and transparency; to expand opportunities for vulnerable groups through a better focalization of social programs and the promotion of growth and productivity to generate quality jobs.