ICE in crisis? Entity alleges that credit is for not stopping works

( .- All the warning lights were turned on this Tuesday, when the Development Bank of Latin America (formerly Andean Development Corporation, CAF), announced that it approved a $ 100 million credit to strengthen the liquidity of the Costa Rican Electricity Institute (ICE).

However, the autonomous institution indicated a day later that the loan it is not a symptom of a deterioration in your finances, but, rather, a way out that the Bank offers so that public service companies do not commit the resources destined for works.

ICE added that in 2021 CAF opened credit lines for companies in the American continent that provide electricity, water and gas services, to offer them a financial alternative to face the consequences of the pandemic of COVID-19 in your finances.

“In the same way, the Bank’s initiative aims to ensure that these companies do not commit funds destined to the execution of infrastructure works, necessary to guarantee their services“ICE explained.

In addition, in the press release, the Institute indicated that the Bank’s decision it denotes confidence in your financial management record.

In the same vein, Juan Carlos Pacheco, ICE’s Finance Manager, stated that the precautionary line of credit for $ 100 million provided by CAF reflects “the trust placed in the Institute and it gives us additional security ”.

Symptoms to worry about?

ICE’s finances are of concern to the Government. Last May, President Carlos Alvarado affirmed, during his third work report, that the Bad decisions in the National Company of Power and Light (CNFL) endanger the finances of the Institute.

In addition, according to figures disclosed by ICE, the entity lost more than ¢ 110 billion in 2020 due to the drop in electricity consumption due to the pandemic.

Last year, too, the ICE lost ¢ 151,896 million due to exchange rate differential, which gives an idea of ​​the magnitude of its indebtedness in dollars.

This year, the autonomous it will face the payment of $ 760 million due to maturities of debt securities that it has issued to finance itself.

The general manager, Hazel Cepeda, informed the Governing Council last May that the company will renegotiate that debt with its creditors.

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