The Government will give up on a controversial $500 million credit for the Costa Rican Electricity Institute (ICE) that was being discussed in the Legislative Assembly.
Luis Paulino Mora, deputy minister of the Presidency for Legislative Affairs, confirmed that the executive branch will withdraw the bill from extraordinary sessions of the Congress.
The decision was made after legislators from several political parties objected to the loan in which the state appears as guarantor.
Lawmakers such as Mario Redondo, from the Christian Democrat Alliance (ADC), denounced that the executive intended to contract the credit, despite the financial situation of ICE and the liquidity crisis revealed by the government last week.
Although the loan offer with the Inter-American Development Bank (IDB) expired on Saturday, Mora said ICE will seek a renegotiation with the bank or explore financing options.
However, he explained that for now the bill will be withdrawn from the Congress and the Government will seek financing mechanisms for the ICE that do not require legislative authorization.
The ICE intended to finance works such as geothermal plants with these resources.