Costa Rica project 515-0115 · 1969 · financial sector

LOAN PROVIDED TO THE BANCO CREDITO AGRICOLA DE CARTAGO (BCAC) TO ASSIST IN ESTABLISHING A SAVINGS AND LOAN SYSTEM IN COSTA RICA WHICH WILL PROVIDE LONG-TERM FINANCING OF LOW AND MEDIUM-COST, OWNER-OCCUPIED HOUSING. THE SAVINGS AND LOAN (S&L) DEPARTMENT OF BCAC, KNOWN AS THE CAJA CENTRAL DE AHORROS Y PRESTAMOS, WILL SUPERVISE THE ORGANIZATION AND OPERATION OF 7 MUTUAL-TYPE S&L ASSOCIATIONS IN COSTA RICA'S MAJOR CITIES. CAJA CENTRAL WILL USE THE USAID LOAN TO FINANCE THE LENDING CAPACITY OF THE S&L ASSOCIATIONS, THUS MAKING POSSIBLE THE CONSTRUCTION OF APPROXIMATELY 1,000 HOMES DURING THE NEXT 2.5 YEARS PLUS THE NECESSARY MORTGAGE FINANCING FOR MIDDLE AND LOWER-MIDDLE CLASS WORKERS. AFTER 10 YEARS OF OPERATION, THE L&L SYSTEM SHOULD HAVE ACCUMULATED ADEQUATE SAVINGS DEPOSITS TO FINANCE THE CONSTRUCTION OF 500 NEW HOUSES PER YEAR, INDEPENDENT OF OUTSIDE SUPPORT. THE LOAN WILL ALSO FINANCE LONG AND SHORT-TERM TECHNICAL ADVISORS AS WELL AS A PORTION OF CAJA CENTRAL'S INITIAL OPERATING EXPENSES.

Source: DEC abstract, PD-AAA-673-B1 (1969). The source's own text.