The Inter-American Development bank will earmark $1.8 billion to fund projects related to the Central American integration process.
This was stated by Luis Alberto Moreno, president of the bank, at the meeting of the Central American Integration System (SICA).
Moreno was quoted by Laprensagrafica.com as saying: “More and better regional integration will be key for economic recovery, global competitiveness and employment generation, as well as promoting equality and the reduction of poverty".
IDB concessional loan will benefit 1.7 million people and develop new sources of renewable energy, contributes to $381 million multi-donor program
Nicaragua has embarked on a historic program to transform its energy matrix and expand access to electricity among the poor with help from a $30.5 million concessional loan approved on July 7 by the Inter-American Development Bank.
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 Inter-American Development Bank has earmarked the funds for energy, transportation and environment.
Daniel Zelikow, executive vice president of the bank, explained that one of the goals is to extend power availability to 60%-80% of the country’s rural areas.
Laprensa.com.ni published further comments by Zelikow: “And this is not only a matter of infrastructure, it also means tackling poverty, as it improves the standard of living and provides job opportunities for individuals”.
The Government of Nicaragua signed a $22.9 million financing agreement with CABEI.
The Central American Bank for Economic Integration (CABEI) will loan $22.9 million for Larreynaga Hidroelectric Power Plant, in addition to $36.7 million originally approved for this project.
Located 160 kilometers north from Managua, the project will be capable of outputting 17 MW, and is being developed by Spanish company Cobra.
Goethermal power plant San Jacinto-Tizate, located in Nicaragua, closed a $77 million credit facility.
The consortium of lenders includes Central American Bank for Economic Integration (CABEI), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Export Development Canada and Cordiant Capital.
Ram Power, owner of the project, "expects to boost site power capacity to 72 MW by fourth quarter 2011.
Loans totaling $15 Million will support startup of program to deliver services to urban children below age six
The Inter-American Development Bank has granted Nicaragua two loans of $7.5 million each to finance a social welfare program for children under six years of age who live in extreme poverty in the nation’s cities.
The program’s goal is to improve living conditions for preschool-age urban children, alleviating the deprivations they face in nutrition, health and stimulation. The program will offer more services for young children in poor neighborhoods while also seeking to improve the quality and sustainability of these services.
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.
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".
A $40.5 million loan will prevent deterioration of fiscal situation due to the global recession.
The Inter-American Development Bank approved a $40.5 million loan to that will provide budget support for Nicaragua and help finance measures that will increase revenue collection and efficiency and transparency of budget execution.
The loan, the second in a series of three programmatic operations to improve the country’s budget management, will allow Nicaragua to prevent a deterioration of its fiscal situation following the global financial crisis and protect expenditures for poverty alleviation programs.
The Central American Bank for Economic Integration will lend Nicaragua $93.4 million for building a hospital and strengthening electric power in the country.
$68 million are earmarked for building a military hospital school called 'Alejandro Davila Bolaños', and the remaining $25.4 million will be used to fund a hydroelectric power plant in the province of Jinotega.
A "preliminary agreement" was struck, under which $35 million would be disbursed in October if a series of measures are enacted.
Some of the measures requested by the International Monetary Fund (IMF) include reforming the 2009 Budget and concluding a proposal for the 2010 Budget.
"Disbursement of the money, warned IMF, will depend on the degree of progress in implementing the agreed measures, which would be evaluated by the Directorate of the Fund by the end of October", reported Nicaraguan newspaper La Prensa.
BCIE assured it will disburse the funds as credits for the financial sector during 2009, specially for micro financing companies.
"All of our customers will keep on relying on the resources" commented Edda Meléndez, Country Manager at the Central American Economic Integration Bank (BCIE). "If they can't have the resources is because of eligibility matters and lack of compliance with requirements, not because BCIE is not disbursing funds", assured Meléndez.