press release

OPIC launches housing reconstruction program for Nicaragua

September 12, 2007

MANAGUA – A partnership between OPIC and a local financial institution will quickly extend housing reconstruction support to hard hit areas of Nicaragua following the destruction leveled by Hurricane Felix. The announcement was made today by Robert Mosbacher, Jr., President and CEO of the Overseas Private Investment Corporation (OPIC).at a signing ceremony with Banco de Credito Centroamerican (Bancentro S.A.) Bancentro President Roberto Zamora participated in the ceremony, which was attended by U.S. Ambassdor Paul Trivelli. 

 Under the agreement signed today, OPIC will extend an existing facility with Bancentro S.A to provide home reconstruction loans, as low as $5,000,  to those effected by the hurricane. Hurricane Felix made landfall near Puerto Cabezas in northeastern Nicaragua on September 4th.  According to preliminary data provided by Nicaraguan authorities, more than 6,000 families were affected by the storm.  OPIC’s program complements other U.S. government relief efforts.

OPIC’s partnership with Bancentro dates to May 2007, when OPIC signed a $10 million agreement with Bancentro to expand its mortgage financing operations for low income borrowers. Bancentro is a leading bank in Nicaragua and the first to extend long-term, fixed rate mortgages in the country.

 “OPIC’s partnership with Bancentro has proven that the private sector can drive affordable housing. Today, an extension of that same partnership will also demonstrate that the public-private partnerships can quickly help victims of a natural disaster.”

OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.

OPIC’s political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. Over the agency’s 35-year history, OPIC has supported $177 billion worth of investments that have helped developing countries to generate more than 800,000 host-country jobs and $13 billion in host-government revenues. OPIC projects have also generated $71 billion in U.S. exports and supported more than 271,000 American jobs.

Visit OPIC on the web at www.opic.gov.
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