In 2009, the Inter-American Development Bank doubled loans to the country, and expects to maintain them in 2010.
This was announced by Mirma Liévano, IDB spokesperson in Nicaragua.
Liévano explained that "Nicaragua was originally assigned $80 million for 2009, but the bank decided to double it, in light of the international financial crisis. Out of the total, $40.5 million corresponded to easing the fiscal deficit.
$684 million in projects are on hold in Honduras, due to IDB and WB freezing financial cooperation with the country.
38 projects are awaiting $456.7 million in funding from the Inter-American Development Bank. Likewise, the World Bank has 17 active projects, with $227.4 million to be disbursed.
An article in Laprensahn.com discusses the measures taken by these international organizations: "These decisions impact negatively in the public investment program. 360 projects were approved for 2009, requiring $12.6 billion in investment. Out of this, 32.4% ($4.1 billion) was to be funded with external resources. All external cooperation was paralyzed after the second semester".
The government is negotiating new credit lines with international institutions, for financing its budget up to 2014.
Credit lines are being negotiated with the World Bank, the Inter-american Development Bank, the Central American Economic Integration Bank and the Brazilian National Development Bank (BNDS).
"95% of all funds, at least those coming from World Bank and IDM, will be spent on social programs and projects supporting vulnerable communities", said the technical secretary of the presidency in a an article in newspaper La Prensa Gráfica.
Once the credit is approved by the Panamanian Congress, phase II and III of the project would start, generating 3.000 jobs.
The extraordinary $42 million loan, given to the Health Ministry for cleaning up the Panama Bay will go to the National Economic Council for consultation. It will be funded by the $167 million credit given to the State by the Japan Bank of International Cooperation (JBIC).
Costa Rican, Guatemalan and Panamanian SMEs will be able to tap a $10 million fund by Scotia Leasing, for financing projects.
Some 100 small and medium companies will benefit from the financing made available by Scotia Leasing Costa Rica, Scotia Leasing Guatemala and Scotia Leasing Panamá. The funds were provided for loan by the Interamerican Investment Corporation (IIC).
The IDB has “detained” all credit activity with Honduras until the political situation in the country is resolved.
The IDB currently has a “very active” portfolio of about $200 million for Honduras, reported Luis Alberto Moreno, president of the Inter-American Development Bank (IDB).
La Prensa Gráfica publishes on its website: “The World Bank and the Inter-American Development Bank announced on Tuesday that they have momentarily frozen their operations with Honduras due to the political crisis in the country and the way in which the situation is resolved will affect the image of Latin America, particularly Central America.”
Costa Rica approved a line of credit from the IDB for the rehabilitation of roads and improvements to the road infrastructure in cities and national routes.
The loans for $850 million authorized by the Inter-American Development Bank (BID acronym in Spanish) were approved by the Legislative Assembly of Costa Rica for financing of the Transportation Infrastructure Program.
A stretch of 180 km will be repaired in the “agricultural corridor,” a highway the unites Tegucigalpa with Puerto Castilla on the Atlantic Coast.
The Inter-American Development Bank (BID, acronym in Spanish) approved a line of credit in the amount of US$50 million for the project, which will improve conditions for the transportation of cargo and people by reducing operating costs and travel times.
BID will finance a loan of $22 million for the implementation of a physical land registry system to cover protected areas in Guatemala.
Guatemala will strengthen its national network of protected areas by improving its land registry system through a loan of $22 million USD from the Inter-American Bank of Development (BID).
The loan will allow Guatemala to provide geographical and legal security to areas under national administration which form part of the Guatemalan System of Protected Areas (SIGAP), thereby creating a modern physical land registry system.
The funds will be available beginning in 2010 and they will be used to fund some projects of Mauricio Funes’ new government.
The president of the Inter-American Development Bank (IDB), Luis Alberto Moreno, announced the new line of credit granted to El Salvador during a visit to the country. This loan is in addition to the $450 million loan granted in 2009 by the same body.
IDB loans in that amount for road infrastructure have not been implemented and are at risk.
During a visit to Costa Rica, IDB president Luis Alberto Moreno urged the country's legislature to approve the use of funds for roads, ports and airports, indicating that excessive delays could put the loan at risk due to the high demand of resources by other countries.
Several hydroelectric plants will be remodeled with funds from an IDB loan, among other projects.
The Costa Rican Electricity Institute (ICE) will immediately receive $250 million as a loan from the Inter-American Development Bank (IDB). These funds are the first half of $500 million requested by the state from the IDB. The other $250 million will be used when necessary.
The World Bank approved $3 million for the Government of Nicaragua to purchase eeds and supplies for basic-grain planting.
The head of the Ministry of Agriculture and Forestry (MAGFOR), Ariel Bucardo, said that in addition to the $3 million approved by the World Bank on Monda, MAGFOR is negotiating with the international entity for an additional appropriation of $10 million "to support the purchase of supplies and seeds for some 240 thousand farmers nationwide," according to an article in Laprensagrafica.com
Panamanian banks will not use Financial Stimulus Program funds due to their terms and conditions.
The Banking Association of Panama, through its president, Mosi Cohen, told the new government’s transition team that banks have not and will not use Financial Stimulus Program (PEF) funds unless there is a change in the terms and conditions.
Journalist Edith Castillo Duarte wrote in a Prensa.com article: "ABP (Panamanian Banking Association) seeks conditions that are more flexible and consistent with our reality in order to maximize these resources and [Cohen] recommended for the new government’s team not to commit to using the funds from the Inter-American Development Bank (IDB) because they would have a very high cost for the country under the conditions that these funds have been presented to us.”
The $500 million contributed by the IDB for the financial incentives program will be available beginning on May 10.
The National Bank of Panama will manage the $500 million available to Panamanian banks through loans with two-year terms and an interest rate of 4.50%, with interests for LIBOR services at 6 months.
The Prensa.com website published: "The PEF funds are destined for short term loans and for promoting investment, employment and stimulus of the Panamanian economy, looking to minimize the crisis."