Economy November 28, 2024 - 8:24 am

President Abinader requests approval for $445 million in loans

Santo Domingo.- President Luis Abinader has requested the approval of two major loan contracts from the Chamber of Deputies, totaling over US$445 million. The first loan, for up to US$400 million, would be provided by the International Bank for Reconstruction and Development (IBRD) to support sustainable development policies focused on climate change. This loan aims to strengthen the country’s resilience to climate change by offering budgetary support for key reforms and being repaid in 47 semiannual installments until 2059.

The second loan, for US$45 million, would come from the Japan International Cooperation Agency (JICA) to finance the Integrated Solid Waste Management Improvement Project. This project seeks to enhance waste management at the Duquesa landfill, improve local living conditions, and reduce environmental pollution. The loan would be repaid over 30 years, with a 10-year grace period and a fixed interest rate of 1.7% per year.

Both loans require approval from the National Congress before implementation. They will first be reviewed by the Finance Committee of the House of Representatives, chaired by Francisco Javier Paulino, and must then be approved in two readings before being sent to the Senate. President Abinader emphasized the importance of these loans in supporting sustainable economic growth, enhancing environmental protection, and strengthening the country’s institutional capacity to address climate change and waste management challenges. The favorable interest rates on these loans are expected to benefit the country and contribute to its long-term development.

 

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