San Jose - The purchase by China of 300 million dollars in
Costa Rican bonds and the involvement in the transaction of a Costa
Rican bank with ties to the Central American country's current
ambassador to China spurred a great controversy.
The opposition were demanding the resignation of Ambassador
Antonio Burgues on Wednesday.
Following several months of silence on the matter, Finance
Minister Guillermo Zuniga told the legislature Tuesday that a local
bank is holding half the funds - 150 million dollars - sent by China.
The other half is not yet in Costa Rican hands.
The bank, BCT, said it receives between 6,000 dollars and 9,000
dollars a month for its work on the matter.
Burgues is listed as a high executive and a partner of BCT at the
Costa Rican trade registry, but bank officials have said he resigned
from the post in July 2007, shortly before he became ambassador to
China.
The diplomat told Costa Rican daily La Nacion that he had nothing
to do with the transaction.
On Friday, Costa Rican President Oscar Arias said the loan is to
be paid off in 12 years with an interest rate below 4 per cent.
Costa Rica established ties with Beijing on June 1, 2007,
following 63 years of relations with Taiwan, which is recognized by
only about two dozen nations, half of which are in Latin America or
the Caribbean.
Following the formal establishment of ties, China offered to buy
up to 300 million dollars in Costa Rican bonds, was preparing to
build a modern 70-million-dollar national stadium and has offered
important lines of cooperation with the Central American country.
Both countries are also evaluating a possible negotiation towards
a free-trade agreement.
Arias visited China in October 2007. Costa Rica is the only
Central American nation with ties to Beijing, while its neighbours
continue to favour Taiwan, which Beijing considers to be part of the
People's Republic of China.
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