Nicaraguan Parliament authorizes loan for 352.58 million with CABEI

This content was published on June 28, 2022 – 18:37

Managua, June 28 (EFE).- The Nicaraguan National Assembly (Parliament) authorized the Executive on Tuesday to negotiate a loan with the Central American Bank for Economic Integration (CABEI) for an amount of 352.58 million dollars to finance a program of expansion and improvement of highways.

The millionaire loan, sent urgently by the Government of President Daniel Ortega, was approved expeditiously with 89 votes in favor, zero against and two did not vote, among the 91 deputies that make up the Parliament, which is under the Sandinista control.

The loan, for 352.58 million dollars, is aimed at financing the “X Program for the Expansion and Improvement of Highways”, which was signed on the 13th between CABEI and the Ministry of Finance and Public Credit of Nicaragua.

This project aims to contribute to socioeconomic development and its areas of influence, improve accessibility and facilitate tourism development in the South Pacific, accessibility to the central region, the Autonomous Region of the South Caribbean Coast, and western Nicaragua, as well how to strengthen integration and Central American trade, according to the agreement.

INTERNATIONAL TOURIST CORRIDOR

Specifically, with these resources it is intended to build and improve 229.13 kilometers of roads and highways divided into four sections, including 149.29 kilometers on the Pacific coast between the departments of Managua, Carazo and Rivas, according to the text.

The idea, according to the program, is to build an international tourist corridor that allows transit and access to all the beaches of the South Pacific of Nicaragua, “giving a boost to tourist, agricultural, livestock and fishing activities in the areas adjacent to the project. “.

With the execution of the four sections, it is estimated that a total of 135,429 inhabitants will benefit, of the 6.6 million inhabitants that Nicaragua has, according to the project.

The total cost of the project is 401.5 million dollars, of which 18.9 million will be contributed by the Government of Nicaragua.

The loan, for 352.58 million dollars, will be repaid over 15 years, including a three-year grace period, with a six-month Libor interest rate that is reviewable and adjustable every six months.

DEBATE OVER PUBLIC DEBT

During the debate, the liberal opposition deputy Walter Espinoza said he was in favor of the expansion and improvement of highways, although he warned about the growth of the public debt.

“Our public indebtedness is healthy, sustainable and that is why the multilateral financial organizations continue to grant us loans,” argued Sandinista legislator Wálmaro Gutiérrez, president of the Economic Affairs Committee.

“Now everything that is a loan is bad because we are getting into debt? What country in the world does not get into debt?” he asked.

For Gutiérrez, being against financing the projects with loans, but in favor of the programs, is like “wanting to drink the milk, but kicking the cow.”

In 2021, the Nicaraguan public sector received external loans for 1,162 million dollars, 332.8 million dollars more (40.1%) compared to 2020, which represented 7.8% of the gross domestic product (GDP) of the country, according to data from the Central Bank.

The multilateral organizations that allocated the most resources to the Nicaraguan public sector in 2021, as loans, were CABEI, with 413.1 million dollars; the International Monetary Fund (IMF), with 353.5 million, the Inter-American Development Bank (IDB), with 195.7 million; and the World Bank, with 128 million.

Nicaraguan opposition organizations have unsuccessfully asked CABEI to condition disbursements to Nicaragua on respect for human rights and “on the release of all political prisoners” in the country. EFE

lfp/cfa

(photo)

� EFE 2022. The redistribution and redistribution of all or part of the contents of EFE services is expressly prohibited, without the prior and express consent of Agencia EFE SA

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Never miss any important news. Subscribe to our newsletter.