The Inter-American Development Bank (IDB) approved a $ 100 million project to support vulnerable populations in Guatemala that have been affected by the emergency measures taken to combat the Covid-19 pandemic.
The objective of this IDB loan is to guarantee a minimum income for people at this time and while the country recovers from the health crisis, with the help of a family bond.
The $ 100 million transaction has a 23.5-year repayment period, will take 18 months, and carries an interest rate linked to LIBOR.
Before the pandemic hit in Guatemala, about 85% of the population lived in a situation of poverty or precariousness, which means that they have no way to sustain their level of consumption in the face of temporary shocks or drastic reductions in their daily income such as the that were unleashed from the beginning of the pandemic.
In fact, according to the IDB, recent data from the great city of Guatemala shows that 70% of those surveyed saw their income drop, half of them by more than 25 percent.
IDB and poverty
The program will consist exclusively of money transfers made with the so-called Family Voucher.
The eligible beneficiaries of this project will be people who live in homes without electricity or in places with high levels of poverty, as well as those who have access to less than 200kWh of electricity per month, measured in February of this year.
This funding aims to help vulnerable people maintain minimum levels of consumption amid the pandemic, which has hampered their ability to earn money.
The aim is to help people who live without electricity, who will account for around 10% of those who receive the family bonus, and the indigenous people, in particular those who also lack electricity in their homes.