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?
In 2010 we had a different situation:
Even though we have been successful in funding Government needs
in 2009 and 2010 with the crisis we have an increase in the interest
rate risk and mainly in the roll over risk in the debt portafolio.
➤With increase of the deficit we got more debt and so more interest
payments that make pressure to the social expenses and to
infrastructure investments. The new Government is taking this situation
seriously (is pursuing a tax reform) but from the debt management
field we can help reducing the interest expenses.
We had "room" for more dollars in our portafolio. During the
previous years of the crisis and before we had the policy of reduce
our share of foreign debt in the portafolio.
➤We got the final approval in the Congress to use the loan.
13View entire presentation