Identifier
Created
Classification
Origin
09SANJOSE464
2009-06-02 23:16:00
UNCLASSIFIED
Embassy San Jose
Cable title:
COSTA RICA: OPIC LOAN TO IMPROSA SERVICIOS
how-toVZCZCXYZ0000 PP RUEHWEB DE RUEHSJ #0464 1532316 ZNR UUUUU ZZH P 022316Z JUN 09 FM AMEMBASSY SAN JOSE TO RUEHC/SECSTATE WASHDC PRIORITY 0900 INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY
UNCLAS SAN JOSE 000464
SIPDIS
DEPT FOR EEB/IFD/ODF; PLEASE PASS TO
OPIC/VP/SF:BTREADWELL; PLEASE PASS TO COMMERCE/FCS
E.O. 12958: N/A
TAGS: CS ECON EFIN PGOV PREL EINV
SUBJECT: COSTA RICA: OPIC LOAN TO IMPROSA SERVICIOS
INTERNACIONALES
REF: A. SECSTATE 515776
B. 2008 SAN JOSE 653
UNCLAS SAN JOSE 000464
SIPDIS
DEPT FOR EEB/IFD/ODF; PLEASE PASS TO
OPIC/VP/SF:BTREADWELL; PLEASE PASS TO COMMERCE/FCS
E.O. 12958: N/A
TAGS: CS ECON EFIN PGOV PREL EINV
SUBJECT: COSTA RICA: OPIC LOAN TO IMPROSA SERVICIOS
INTERNACIONALES
REF: A. SECSTATE 515776
B. 2008 SAN JOSE 653
1. SUMMARY: Embassy San Jose supports the Overseas Private
Investment Corporation's (OPIC) proposal for a USD 10 million
loan to Improsa Servicios Internacionales (ISI). The Econ
and FCS Sections reviewed the proposal and concluded that
there were no reasons that the loan should not proceed
(reftel A). END SUMMARY.
--------------
RECENT COUNTRY EVENTS
--------------
2. The hand of the global economic crisis has touched
Costa Rica primarily in the form of decreased economic
activity and unemployment in select sectors of the economy,
notably tourism, construction (particularly activity
devoted to resort development, both residential and
hospitality),and manufacturing. In contrast to this
trend, economic activity and employment in the areas of
professional services and medical devices (development and
assembly) continues apace. Overall, the global crisis has
dragged down the Costa Rican economy as demand in export
markets contracted. Predictions on gross domestic product
growth for the year currently vary between 0 percent and
downward to -1 or, at worst, -2 percent.
--------------
STANDING OF ISI
--------------
3. Embassy review of the subject companies -- ISI and a
related company with controlling interest, Grupo Financiero
Improsa (GFI) -- and a key shareholder investor -- the
Ortuno family -- did not produce any information linking
the company and / or principals to terrorism, money
laundering, corruption, or violations of law. Manuel
Ortuno Pinto of the Ortuno family holds two positions with
GFI: General Manager of GFI and Secretary of GFI's Board
of Directors. We believe that Manuel Ortuno Pinto is related
to
Alfredo Ortuno, the President of the Central American Bank
for Economic Integration.
--------------
COMMENT
--------------
4. Since our last cable to OPIC (reftel B),credit markets
did significantly tighten in Costa Rica. Thus, we support
any assistance provided by OPIC that eases commercial and
consumer credit in Cost Rica. We remind OPIC that USAID does
not
have an in-country economic development assistance team in
Costa Rica. (The lone in-country USAID mission is the
Office of Foreign Disaster Assistance). Hence, there is no
USAID
development staff to review the OPIC proposal.
CIANCHETTE
SIPDIS
DEPT FOR EEB/IFD/ODF; PLEASE PASS TO
OPIC/VP/SF:BTREADWELL; PLEASE PASS TO COMMERCE/FCS
E.O. 12958: N/A
TAGS: CS ECON EFIN PGOV PREL EINV
SUBJECT: COSTA RICA: OPIC LOAN TO IMPROSA SERVICIOS
INTERNACIONALES
REF: A. SECSTATE 515776
B. 2008 SAN JOSE 653
1. SUMMARY: Embassy San Jose supports the Overseas Private
Investment Corporation's (OPIC) proposal for a USD 10 million
loan to Improsa Servicios Internacionales (ISI). The Econ
and FCS Sections reviewed the proposal and concluded that
there were no reasons that the loan should not proceed
(reftel A). END SUMMARY.
--------------
RECENT COUNTRY EVENTS
--------------
2. The hand of the global economic crisis has touched
Costa Rica primarily in the form of decreased economic
activity and unemployment in select sectors of the economy,
notably tourism, construction (particularly activity
devoted to resort development, both residential and
hospitality),and manufacturing. In contrast to this
trend, economic activity and employment in the areas of
professional services and medical devices (development and
assembly) continues apace. Overall, the global crisis has
dragged down the Costa Rican economy as demand in export
markets contracted. Predictions on gross domestic product
growth for the year currently vary between 0 percent and
downward to -1 or, at worst, -2 percent.
--------------
STANDING OF ISI
--------------
3. Embassy review of the subject companies -- ISI and a
related company with controlling interest, Grupo Financiero
Improsa (GFI) -- and a key shareholder investor -- the
Ortuno family -- did not produce any information linking
the company and / or principals to terrorism, money
laundering, corruption, or violations of law. Manuel
Ortuno Pinto of the Ortuno family holds two positions with
GFI: General Manager of GFI and Secretary of GFI's Board
of Directors. We believe that Manuel Ortuno Pinto is related
to
Alfredo Ortuno, the President of the Central American Bank
for Economic Integration.
--------------
COMMENT
--------------
4. Since our last cable to OPIC (reftel B),credit markets
did significantly tighten in Costa Rica. Thus, we support
any assistance provided by OPIC that eases commercial and
consumer credit in Cost Rica. We remind OPIC that USAID does
not
have an in-country economic development assistance team in
Costa Rica. (The lone in-country USAID mission is the
Office of Foreign Disaster Assistance). Hence, there is no
USAID
development staff to review the OPIC proposal.
CIANCHETTE