VZCZCXYZ0000
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 
 
¶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