Hurricane Otto’s destructive power in national territory puts the government in a predicament, since it must now find resources to start the reconstruction of infrastructure and fund social welfare programs.
In order to carry out these tasks, there are several mechanisms that can be used, without the Executive having to resort to greater debts.
According to economist Ennio RodrÃguez, who in the past worked in multilateral organizations, these are some alternatives that the government can take advantage of, especially for the period of restoration of roads and other works:
-Request ECLAC a valuation of damages.
-Review the current loan portfolio (or recently approved) by the IDB, the Central American Bank for Economic Integration (CABEI) and the World Bank to determine the possible redirection of loans aiming to the reconstruction.
-Ask the Inter-American Development Bank (IDB) for a non-reimbursable, quick-disbursement cooperation to solve the emergency.
-Review the Budget of the Republic to redirect funds to the reconstruction.