RACSA bolstered by loan from parent company

19 Nov 2012

State-backed incumbent Grupo Instituto Costarricense de Electricidad (Grupo ICE) has issued a USD30 million loan to its wholly-owned subsidiary Radiografica Costarricense (RACSA) to keep the broadband operator afloat, reports the Costa Rica Star. The ailing telco has finalised plans for its revival, including inking a deal with Via Europa to build out a fibre-based access network in San Jose, but is yet to regain its footing. RACSA is expected to close the year at a loss, though the company’s CEO Orlando Cascante noted that despite earlier predictions of losses of USD25 million for the year, the operator was in fact looking at a loss of USD11 million for the twelve months. Cascante added that RACSA had also gone to the banks for financing, though it was parent company ICE that eventually stepped in to assist.

Costa Rica, Grupo ICE, Radiografica Costarricense (RACSA)