Dominican Republic US$1.38B in l IDB loans among region’s highest

Santo Domingo.- With US$1.38 billion in loans, Dominican Republic is among the region’s nations which owe the most to the Inter-American Development Bank (IDB).

The IDB has become one of the main sources of financing since it disbursed the resources for its first project in the country approved on March 2, 1962, aimed at improving housing in neighborhoods. The country took a loan of US$19,000 for that project.

Since then, Dominican Republic’s debts with the international bank have grown substantially, to US$430.0 million in loans just in projects aimed at social investments.

“This amount of US$1.3 billion includes both disbursed and non-disbursed amounts,” said Humberto Gobitz, IDB chief of operations in the country, quoted by newspaper El Dia.

Differences

Taking into account the loan portfolio of the various countries, the Dominican Republic surpasses in loans with the IDB, nations like Panama , which currently owes US$634.45 million. Also Nicaragua (US$907.3 million, Honduras (US$955.8 million), Jamaica (US$523 million), Haiti (US$1.17 billion) and Paraguay (US$1.33 billion).

Gobitz noted that the Dominican Republic is one of five poor nations in per capita income index to which the IDB gives special treatment. This includes more payment flexibility. The other countries on that group are Honduras, Bolivia, Guyana and Nicaragua.

“Outside these five countries, we offer the same conditions at all times, which is a period of 25 years of payment,” said the IDB executive, adding that at this time the interest on loans is 2.25% per year.