30-07-2009 15:14 Guatemala
Guatemala gets World Bank USD$350 million loan
WASHINGTON, July 30 (NNN) – The World Bank Board has approved a US$350 million Development Policy Loan (DPL) for Guatemala to cushion impact of the global economic crisis.
A World Bank statement said the loan is to improve macroeconomic stability, governance and transparency and provide opportunities for better focalisation of social programmes and the promotion of growth and productivity to generate quality jobs.
“The government of Guatemala has demonstrated its commitment to mitigate the impact on the poor of this global crisis and has placed a greater emphasis on those policy reforms needed for its economic and social development”, Laura Frigenti, World Bank Director for Central America, said.
This new loan is the last in a series of two Development Policy Loans, and based on the results obtained during the first stage. It supports the government’s strategic programme to reinforce Guatemala’s capacity to grow and reduce poverty and inequality.
The loan is part of the Strategic Alliance between the World Bank and Guatemala for the 2009-2012 period.
The strategy supports the government’s development programme in education, health and nutrition, investment in rural infrastructure, improvements in productivity, energy and disaster mitigation.
The US$350 million Development Policy Loan has a maturity period of 26.5 years, including a grace period of 8.5 years.