CABEI approves $150m loan for housing in Honduras

The Central American Bank for Economic Integration (CABEI) has approved $150 million in financing for Honduras to finance the Resilient Housing Reconstruction Program in Honduras for 29,500 vulnerable families.

The loan will facilitate the granting of subsidies for the acquisition, reconstruction, or rehabilitation of housing. In addition, 26 subprojects will be financed, including mitigation works, reconstruction of neighbourhoods and basic services, and improvement of shelters in several communities and neighborhoods in the project's intervention area, so that approximately 2,900 homes will be built, and 26,500 affected homes will be rehabilitated, in addition to the construction of 36,900 m2 of spaces for cultural, sports, and recreational purposes.

The purpose of this program is to support the Honduran housing reconstruction and recovery process through the implementation of rapid and resilient solutions for vulnerable populations affected during the emergency caused by extreme weather events resulting from climate variability.

The loan was approved on the following terms: up to $91.2 million for a term of up to 20 years, including a grace period of up to five years and a revisable indicative interest rate of 2.72% (2.5% + LIBOR revisable semi-annually); up to $58.7 million for a term of up to 25 years, including a grace period of up to five years and a fixed annual interest rate of 1.50% under the Poverty Reduction and Economic and Social Exclusion Program.