Managing Vulnerability to Natural Disasters and Financing in Costa Rica

2) Using Back Up Financing to Boost Investor Confidence in Costa Rica How Costa Rica has used the DPL with DDO? ➤ Following the Government's request, the line of credit was prepared in a few months and made available to the government in April 2009. Even with and important fiscal deficit during 2009 (3.5%) we didn´t use the DPL DDP. There was uncertainty about the final approval of the Congress (Presidential elections were approaching) so we made all our funding strategy with the domestic market. ➤ But the market always knew that we had the possibility to use the $500 million from the DPL DDO. This helped us to control pressures over interest rates in the Government auctions. 12

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