Budget support loan resources may be used to cope with the national emergency.
The Ministry of Finance is closer to requesting the disbursement of a budget support loan to CAF -Development Bank of Latin America-, for US $ 500 million. This March 21, the deputies of the Republic approved said project in the first debate.
The main objective of this financing is to support the financial sustainability of our country. In the current context, CAF funds will also be an important source to attend the emergency caused by COVID-19
Finance Minister Rodrigo Chaves once again thanked the speed with which Congress approved the project in the first debate: “Today more than ever, the country requires resources to recover the balance of public finances. I thank the deputies for their willingness to work so hard during these days of emergency, and for their willingness to agree on the necessary projects to confront COVID-19. ”
The approved credit has a term of 18 years, counted from the effective date of the loan contract. Includes a three-year grace period and a 15-year amortization period.
In May 2019, the loan contract and a Capital Stock Subscription Agreement were signed, this allowed the country to become a full member of CAF. The previous December, the capitalization for US $ 100 million was signed.
With this capitalization, the country can access long-term financial resources, as well as technical cooperation and knowledge management funds, for both the public and private sectors.