World Bank to Provide $3 Billion for Central America
Pamela Cox World Bank
For Costa Rica alone, the bank has approved a US$500 million loan that will seek to mitigate the financial impact the U.S financial crisis may have on the country. According to Cox, the World Bank has approved such loans since the crisis is due to external factors and not to wrong internal management.
Cox met with Costa Rican president Oscar Arias and Minister of Finance Guillermo Zuñiga. In a press conference, Cox announced that the World Bank would provide US$13 billion for the Caribbean and Central America of which US$3 billion will be for Central America and US$500 million for Costa Rica.
The Minister of Finance for Costa Rica stated that the country will request the loan although it will not withdraw funds unless absolutely necessary. Costa Rica has been given the option to request partial withdrawals when needed.
During her visit to Costa Rica, Cox also mentioned that Central America strongly depends on its commerce with the United States. The possible decrease in demand on behalf of the United States will have a substantial impact on Central America’s economy.
The financial crisis has made only affected certain industries in Costa Rica so far. The majority of the population remains cautious yet unaffected. Tourism has taken a step forward in strengthening its sustainable practices that will greatly benefit the country during the financial crisis.
Costa Rica hotels, restaurants, tour operators and related businesses have steadily shifted to green practices that will reduce its dependency on traditional energy and commercial sources.
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