The Central American Bank for Economic Integration (CABEI) and the Government of Costa Rica signed this Wednesday the loan contract for US $ 300 million that will serve as the basis for the creation of the National Fund of Guarantees and Guarantees for economic reactivation and support to debtors affected by the COVID-19 pandemic.
This financing will be presented to Congress and, after its approval, will be available to companies and individuals with productive activities affected by the pandemic through financial entities supervised by the General Superintendency of Financial Entities (SUGEF).
The CABEI loan comes from the Development Policy Operations Program (OPD) approved in July for US $ 250 million for Costa Rica, plus an additional US $ 50 million from the Regional Program for Support and Preparedness for COVID-19 and Economic Reactivation.
The administration of the Fund will be carried out through the creation of a trust, where the Ministry of Finance will be the settlor and the National Insurance Institute (INS) will be the trustee, which will allow financial entities to manage operations under special conditions of interest rates and terms.
This operation is the first of its kind that Costa Rica, as a founding member of CABEI, receives from the entity and comes as support at a time when the economy is experiencing the ravages caused by the pandemic. It was hard work on the part of the authorities and the Bank to be able to formulate and present the proposed Law in the short term and we hope that in the coming weeks it will be available to the beneficiaries ”, explained CABEI Executive President Dr. Dante Mossi .
The Minister of Finance, Elian Villegas, participated in the signing of the contract, who said: It is time for the Costa Rican State to support the private sector in the reactivation process. The Guarantee Fund project helps this sector so that credit is more within reach of its hand, and it can continue with its businesses and with the generation of employment that the country occupies so much. This loan that is signed with the Central American Bank for Economic Integration is the instrument that will allow us to fund this guarantee fund in favor of private companies, in order to maintain jobs and carry out the reactivation process for the benefit of Costa Rica.
For her part, the Minister of National Planning and Economic Policy, María del Pilar Garrido, was also a participant in the signing as an honorary witness and explained that: “The Guarantee Fund is a key instrument of the economic roadmap, whose purpose It is to reactivate credit, protect employment and support companies hit by the pandemic, particularly in the tourism, trade and transport sectors. The idea is that the guarantees contribute to improving companies’ access to bank credit for working capital and facilitate the readjustment of the debts of firms affected by COVID-19. This CABEI loan will have a major impact on the economic recovery.
The Government estimates that the new National Guarantee and Guarantees Fund for economic reactivation and support for debtors affected by the COVID-19 pandemic will benefit about 18,000 companies and will be available to beneficiaries within 12 months.