Arab News
Kuwait times, Wed, Aug 27, 2025 | Rabi al-Awwal 4, 1447
KFAED inks KD 4m loan agreement with Nicaragua
Kuwait:
Kuwait Fund for Arab Economic Development (KFAED)
signed Tuesday a loan agreement with Nicaragua worth KD 4 million ($13 million)
to contribute to financing the construction of the Prinzapolka Bridge on the Rio
Blanco-Siuna Highway. In a press statement, the fund said the project entails
the construction of a bridge over the Prinzapolka River with an approximate
length of 115 m. The fund noted that the project aims to support economic and
social development by enhancing commercial and investment opportunities in key
sectors such as agriculture, livestock, mining, light industries, services,
tourism and trade.
It added that the project is expected to reduce
vehicle operating costs and travel time for both cargo and passenger transport
by bypassing urban congestion, while also improving road safety for all users.
According to the statement, the loan will cover approximately 76 percent of the
total project cost and will be repaid over a period of 20 years, including a
four-year grace period. The loan carries an annual interest rate of two percent
in addition to a 0.5 percent annual service charge to cover administrative and
implementation expenses.
The fund indicated that this marks its third loan
to Nicaragua, having previously extended two loans totaling approximately KD
10.13 million ($33.42 million) to finance the construction and equipping of the
Chinandega Departmental Hospital in the healthcare sector. The agreement was
signed by Acting Director General of the Kuwait Fund for Arab Economic
Development Waleed Al-Bahar and Nicaragua’s Minister of Finance and Public
Credit Bruno Gallardo. Established in 1961, the Kuwait Fund aims to assist Arab
countries in their development efforts. It later expanded its activities in 1974
to include African countries, thus providing financing to both Arab and African
nations.