A Loan Agreement was signed today between the Republic of Nicaragua and Kuwait Fund for Arab Economic Development, whereby the  Fund will extend a Loan of  Kuwaiti Dinars Eight Million Five Hundred Thousand (KD 8,500,000) about US$ 29.7 Million to help finance the Construction and Equipment of Chinandega Departmental Hospital Project in the Republic of Nicaragua.

The Loan Agreement was signed on behalf of the Republic of Nicaragua by His Excellency Mr. Ivan Acosta Montalvan, Minister of Finance and Public Credit, and on behalf of the Fund by Mr. Ghanem Sulaiman Al-Ghenaiman, Deputy Director-General of Kuwait Fund for Arab Economic Development The Project aims to support the social and economic development of the Chinandega Department by meeting the increasing demand and improving the quality, coverage, and access to secondary healthcare services in the Department.      

The total cost of the project is estimated at about US$ 95 Million i.e. about KD 28,000,000, of which KD 21 Million of foreign currency which represents about 76% of the total costs of the Project. The Fund's loan will cover about 30% of the total cost of the project.  The Central American Bank for Economic Integration is also willing to contribute in financing the project by extending a loan of about US$ 54 million. The Government of Nicaragua is committed to cover the remaining cost of the project.

The Loan will be for a period of 24 years including 4 years of grace period, and will be amortized in 40 semi-annual installments.

The Loan bears interest at 1.5% per annum, in addition to 0.5% per annum to cover administrative and other expenses incurred in the implementation of the Loan Agreement.By signing this Loan Agreement, this will be the 1^st loan extended by the Fund to Republic of Nicaragua.