IDB approves loans for Argentina, Ecuador and Paraguay
May 21, 2020 |
Regional development bank grants $970 mln in financing to bolster healthcare in the three countries during the coronavirus pandemic
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The Inter-American Development Bank (IDB) approved on Tuesday a total of $970 million in loans for Argentina, Ecuador and Paraguay to underpin their efforts to battle against the COVID-19 pandemic.
The bank approved a $470 million loan for Argentina, a $250 million loan for Ecuador and a line of credit of up to $250 for Paraguay.
Argentina’s $470 million loan, maturing in 2043, will be used to secure access to COVID-19-related medical attention for 17 million people. Under the terms, the loan has a four-year grace period where no payments are required at the start. The interest rate will be based on Libor. Resources come from the reassignment and reformulation of the bank’s portfolio with the country and are part of a $1.8 billion IDB commitment with Argentina announced by the bank on May 7. Argentina will be providing a $125.8 million local counterpart to the endeavor.
The $250 million loan to Ecuador will be used to finance a project seeking to improve the detection and monitoring of COVID-19 infections. It has a 25 year maturity and a six-year grace period where no payments are required. The interest rate on the payments will be based on Libor. This is the second in a $700 million COVID-19 lending program first announced by the IDB on April 16.
Paraguay’s new $250 million credit line will be executed through three loans. Only the first one, for $105 million, has been approved. It will be used to build a sewer and clean water project for 92,000 households in the Cuenca Lambaré sector of the metropolitan area of Asunción. This loan has a $60 million local counterpart from the fund for the promotion of development known as FONPRODE. The loan has 6.4-year grace period on initial payments and will have an interest rate based upon Libor.