Europa Zurqui

MIGA issued $1.9 million in coverage to Radisson Hotels International, Latin America, Inc. (United States) for its $750,000 equity investment in a hotel in San José. MIGA also issued $7.6 million of coverage to the Caribbean Mercantile Bank of the Cayman Islands (CMB), a subsidiary of the Bank of Nova Scotia, for its $8.5 million loan to the project. MIGA guarantees cover Radisson's investment against the risk of transfer restriction and the bank loan against expropriation, transfer restriction, and war and civil disturbance risks.

The hotel is Europa Zurqui, a 107-room,four-star hotel built in 1994. CMB's new loan, covered by MIGA, will refinance existing term debt and provide funds to cover capital improvements.

The hotel will have an important impact on local businesses. It will purchase about 80 percent of required goods and services locally, including food products and taxi, telephone, and dry cleaning services. In addition, the local economy will benefit from the increased number of tourists and business travelers.