The board of directors of the IDB has decided to resume relations with Honduras.
In a few days, the Inter-American Development Bank will send a mission to Honduras, which could announce the portfolio of joint projects for 2010.
"Most multilateral financial institutions such as IDB, the World Bank and the IMF suspended relations with Honduras after the political crisis", reported Laprensagrafica.com.
From March 15 to 25, the International Monetary Fund (IMF), will evaluate the country’s economy in the wake of 2009’s political crisis.
After this assessment, the IMF may reach an agreement with the Government for a loan or some sort of cooperation, explained María Elena Mondragón, president of the Central Bank.
“The official remarked that a new agreement with the IMF would be in line with the Government Plan proposed by President Porfirio Lobo, with ‘coherent’ proposals”.
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.
After the political agreement, the country hopes to restore international loans and cooperation estimated at $739 million.
The financial blockage was imposed by the United States, the European Union and Venezuela, together with financial institutions such as IMF, WB, IDB and CABEI, after the political events of June 28th.
Amílcar Bulnes, president of the Honduran Council for the Private Enterprise (Cohep), argued about the "need to not mix political conflicts with economic matters. Bulnes declared that, if so is decided, Honduras could remain a member of Petrocaribe. Its participation was suspended by Venezuela on June 28".
Congress approved five loans totaling $950 million to finance this year's budget.
MIPUNTO.com reports on its website: "...while three other loans for $58 million are still pending, said a lawmaker.
The sub-head of the governing fraction, Nery Samayoa, explained that the funds will be granted by the Inter-American Development Bank and the World Bank."
The main condition from the IDB is that the BCR use the funds to create a short-term credit portfolio in the financial system for working capital and international trade.
The Central Bank indicated that the reserves will be available at participating financial institutions, who have responded positively to channeling the resources to production activities, including small businesses.