CABEI, Costa Rica sign $300m credit to form National Guarantee Fund
The Central American Bank for Economic Integration (CABEI) and the Costa Rican government have signed a $300 million credit that will serve as the basis for the creation of the National Guarantee and Deposit Fund for the economic reactivation and support of debtors affected by the COVID-19 pandemic.
The administration of the fund will be carried out through the creation of a trust, where the Ministry of Finance will be the grantor and the National Insurance Institute will be the trustee, which will allow the financial institutions to manage the operations under special conditions of interest rates and terms. The Guarantee Fund project aims to help the private sector so that credit is more within reach, and so it can continue with its businesses, and employment generation.
CABEI's loan comes from the Development Policy Operations Program approved in July for $250 million for Costa Rica, plus an additional $50 million from the Regional Support and Preparation Program for COVID-19 and Economic Reactivation.
