Govt evaluating US$715mn for reconstruction

- Wednesday, March 9, 2011

Govt evaluating US$715mn for reconstruction

Guatemala's government is evaluating proposals from the international community to provide US$715mn in grants and loans to help repair damage caused last year by the severe winter and the Pacaya volcano eruption.

President Álvaro Colom requested the funding last October, after which grants worth US$102mn and US$613mn in loans were offered.

The finance ministry must evaluate the country's debt margin before greenlighting the financial proposals, according to a presidential release.

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The most advanced proposal is from BCIE-ICAP Capital Market, a JV formed by the Central American Bank for Economic Integration (Cabei) and interdealer broker ICAP. The financing would be used for a project to repair the Motagua river basin.

Guatemala was struck in 2010 by tropical storms including Agatha, Frank and Hermine. The eruption of the Pacaya volcano in May caused localized damage to infrastructure south of Guatemala City.