WASHINGTON The Inter-American Development Bank (IDB) on Tuesday approved two soft loans worth 93.8 million dollars to Honduras and Nicaragua, to help them rebuild after Hurricane Mitch. With these loans, the IDB has provided a total of 196.8 million dollars to the Central American countries hit by the storm, the bank said in a statement. Honduras will receive 45.2 million dollars for a program aimed at promoting better nutrition, health and education for the poorest families.

Nicaragua's loan of 48.6 million dollars will go toward improving the hospital network and services for pregnant women and children with limited income. The loans were granted for a period of 40 years at an interest rate of one percent for 10 years and two percent thereafter. Last week, the IDB approved a soft loan to Honduras for 63 million dollars for reconstruction and development in San Pedro Sula and Tegucigalpa, and offered Nicaragua 40 million for the rebuilding and repair of public infrastructure.

The bank is also preparing a 50-million-dollar loan for Honduras' Social Investment Fund and is retargeting some 430 million dollars already approved for Central America to better aid in reconstruction. On December 10 and 11, the IDB will hold a conference of donor countries and organizations in an effort to coordinate international aid. The five Central American presidents have confirmed they will attend.

(AFP)