After the Netherlands decided not to give $21 million to the Ortega administration for the construction of the North Caribbean Regional Hospital, the Nicaraguan government assured that it will finance the work with its own resources.
According to official information, the hospital project, which will have a total cost of $82 million and will be financed by a loan from the Central American Bank for Economic Integration (CABEI) and funds from the Government of Nicaragua, is expected to begin construction on August 23.
Within the framework of the political and economic crisis that has limited access to international loans, Nicaragua's National Assembly approved a $100 million loan with a Taiwanese bank, at the request of the Ortega administration.
After U.S. President Donald Trump signed a law known as the "Nica Act" in December 2018, which limits Nicaragua's access to international loans, Daniel Ortega's government has been forced to seek new sources of financing.
The CABEI has approved a $425 million loan to finance a water supply project in three cantons in Guanacaste, Costa Rica.
The Central American Bank for Economic Integration (BCIE) reported that the funds will be used to finance construction of hydraulic, civil and mechanical structures to achieve the multiple purpose of providing water for irrigation, water for human consumption and future generation of energy.
The lower house of the US Congress has approved the law known as the Nicaraguan Investment Conditionality Act or Nica Act, which proposes placing conditions on loans granted by international institutions to the government of Daniel Ortega.
The Nica Act, promoted by two US congressmen to limit investment and international financing in Nicaragua, was again seen by the lower house, which unanimously approved it. Now the bill will pass to the Senate, but in order to become effective, it must pass through three more proceedings.
Financing from the CABEI will be used for the construction of two sections road measuring 58 kilometer in the departments of Managua, Carazo and Granada.
From a statement issued by the CABEI:
Managua, November 15, 2016.-The Central American Bank for Economic Integration and the Government of the Republic of Nicaragua signed a loan for US $67.0 million to finance the project "Improvement of Tranches of Nejapa Road - El Crucero - Diriamba - Jinotepe-Nandaime" consisting in the construction of two highway sections using hot asphalt mix, which together total 58.13 kilometers, located in the departments of Managua, Carazo and Granada.
With a BCIE loan approved by the National Assembly, roads connecting the departments of Managua, Boaco, Chontales and Granada will be improved.
From a statement from the National Assembly of Nicaragua:
The National Assembly unanimously approved the Decree on a Loan to improve the road sections: Malacatoya - Victoria de Julio and Malacatoya- El Palo - El Papayal. The road infrastructurefinanced by the Central American Bank for Economic Integration (BCIE) will connect the departments of Managua, Boaco, Chontales and Granada.
Less investment, depletion of international reserves and contraction of public spending, in the opinion of Funides, are some of the effects that might be felt if the US Senate approves the bill.
The Nicaraguan Foundation for Economic and Social Development (Funides) has analyzed the potential impact of a possible US approval of the bill known as the "Nica Act", which aims to place conditions on the granting of loans by international institutions to the Ortega administration.
Up until September government institutions had only executed 13% of the total amount of funding provided by the Inter-American Development Bank.
Although changes were made in the legislation to accelerate the implementation of funds in various state entities, there are still obstacles to streamlining processes.
Jairo Flores, chairman of the Finance Committee in Congress, said that of the loans granted by the IDB, "... the Ministry of Health has implemented 30% of them, Education 4.3%, Economy 26%, Communications 5.5%; environment, 66%; Secretariats, 0%; obligations which are the responsibility of the Treasury, 17%, and Development, 0% ".
The US Congress passed a law which puts conditions on Daniel Ortega's government for obtaining loans from international institutions.
The purpose of the law known as the Nica Act, is for loans negotiated between Nicaragua and international financial organizations to be rejected by the United States, unless the Ortega government takes"...
Up to $372 million of the state pension scheme could be invested in public infrastructure projects in Costa Rica.
Funding public works using Costa Rica's national savings funds saw a new and positive development in matters relating to the management of resources in the economy. The Board of Directors of the Costa Rican Department of Social Security approved a policy that allows allocation of up to $375 million of the reserves from the regime for Disability, Old Age and Death (IVM by its initials in Spanish) to be invested in public infrastructure projects, reported Nacion.com.
The launch of a tender for its construction is still scheduled for early 2017 and the line will run parallel to the fourth bridge over the Panama Canal.
From a statement issued by the Foreign Ministry of Panama:
The presidents of Panama, Juan Carlos Varela, and Japan, Shinzo Abe, will preside this April 18th in Tokyo, over the signing of the financing and project management of the construction of Line 3 of the Metro de Panama going towards the province of Panama Oeste, a work which is expected to be started at the beginning of 2017 and to be completed in 2022.
Congress has approved a loan from the French government to finance the construction of the water treatment plant in Las Pavas.
From a statement issued by the Legislative Assembly of El Salvador:
With the aim of finalising the funding for the "Project for the Renovation of a Drinking Water Treatment Plant in Pavas and Network adduction", representatives of the Legislative Assembly approved a financial protocol between the governments of France and El Salvador, for an amount of € 53 million (US $59 million).
An announcement from Moody's confirms the limited room for maneuver left to the country when obtaining external financing, compromising access to credit for the private sector.
Costa Rica has received a new warning over a possible lack of access to funds in the international market with which to alleviate its growing fiscal deficit. After China's decision not to buy $1 billion in bonds , the rating agency Moody's anticipates a rise in interest rates in the country and a deterioration of credit and growth.
The interest rate rise in the US and the perceived risk of the Salvadoran economy have taken their toll on foreign debt bonds, whose yields have risen by about 2% in recent weeks.
This increase in yield of debt securities traded on the international market will be reflected in the forthcoming issues made by the government, which, according to economic analyst Mauricio Choussy, "...
With a $59 million loan from the French government renovation of the water treatment plant in Las Pavas will be undertaken.
From a statement issued by the Ministry of Economy of El Salvador:
Today the commitment of the Republic of France to grant resources for the "Renovation Project of the Water Treatment Plant in Las Pavas", amounting to €53 million euros was formalized.