Investors seem pleased with today's announcement that the 'Banco Interamericano
de Desarrollo' (1) has approved US$850 million loan to help rebuild Costa Rica's
roads, bridges, ports, airport, cycle paths and even the Metropolitan Electric Train.
It's now up to the Legislative Assembly to formally accept this credit or not ...
Needless to say President Oscar Arias is encouraging them to approve of this as fast
as they can saying that; "we have waited many years to improve our infrastructure."
US$100 million of the money will be allotted to the Metropolitan Electric Train which
will unite San Jose, Heredia, Cartago and Alajuela. This alone could have a dramatic
affect on real estate prices in selected ares within the Greater Metropolitan Area.
To obtain the loan, the Costa Rican government must commit $200 million for a total
investment in Costa Rica infrastructure improvements of over one billion dollars. By
anyone's standards one billion dollars is a significant investment.
Thankfully over the last three years, Costa Rica's external debt as a percentage of
its GDP - gross domestic product (2) has declined from 55% in 2005 to 47% in 2007
so the finance minister Guillermo Zuñiga seemed comfortable that this will have "no
The debt rating company Moodys also seems comfortable and elevated the credit rating
of Costa Rica's sovereign debt to "Ba1".
The US$850 million will be dispersed over a five year period so we will not see these
improvements overnight but over the next fifteen years.
It was also announced today that Amazon.com would be hiring 300 full time staff for
their new Amazon Support Services Costa Rica, S.R.L. to be opened in Heredia in
November and 400 part time staff for the busy Christmas period.
What was not announced today is that international investors are seeing this news as
a huge vote vote of confidence in the future of Costa Rica, so we should see even
more businesses from the USA and Europe expanding their operations to Costa Rica
and we'll certainly see even more international real estate investors looking for deals...
What are you waiting for?
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Hasta luego from your 'amigo' in Costa Rica - Perhaps your new home of stunning
scenery, sunshine and smiles.
Scott Oliver - Founder of WeLoveCostaRica.com
Author of 'How To Buy Costa Rica Real Estate Without Losing Your Camisa' (Shirt)
and 'Costa Rica's Guide To Making Money Offshore in Bull & Bear Markets.'