State-Run Development Bank Approved in First Vote

October 19, 2007

The legislative National Assembly Oct. 12 approved in the first of two rounds of voting the creation of a new state-run bank that will be used to finance development and public works projects.

The bank, which has been a promise of the Sandinista government, will receive $1.9 million annually, or $7.9 million over the next four years .

Despite being approved by 84 of 92 lawmakers, there remains debate over the function and management of the bank.

Some opposition Liberal lawmakers claim the new state bank should not compete with the private microfinance institutions, and instead should focus resources on the agricultural and productive sector.

Others, meanwhile, expressed concern about transparency issues.

To address that concern, it was decided that an independent auditor would audit the bank once a year.

The new bank will gather government resources that are currently distributed among different state institutes and organizations, such as the Institute of Rural Development (IDR), the Rural Credit Fund (FCR), the Ministry of Agriculture and Forestry (MAGFOR) and the Institute to Support Small and Medium-sized Business (INPYME).

If passed in second vote and into law, the new financial institution will become the first state-run bank since the collapse of the banking system in 2000.

 

You may be interested

Adaptive surfing, part II: The story of Dean Bushby
sports
97 views
sports
97 views

Adaptive surfing, part II: The story of Dean Bushby

Ellen Zoe Golden - May 22, 2018

A three-part look at adaptive surfing in Costa Rica. Read Part I here to learn how a Central Pacific coach is…

Costa Rica launches Pride Connection network
Human rights
119 views
Human rights
119 views

Costa Rica launches Pride Connection network

Elizabeth Lang - May 22, 2018

As Costa Rica continues to grapple with the disagreements about marriage equality and gender identity that dominated the second round…

Costa Rica at a glance: top news from the past week
The Alvarado Administration
166 views
The Alvarado Administration
166 views

Costa Rica at a glance: top news from the past week

The Tico Times - May 21, 2018

Newly inaugurated Costa Rican President Carlos Alvarado is closing in on two weeks on the job. Here are some of…