Contacts: In Washington: Stevan Jackson (202) 458 5054
sjackson@worldbank.org; In Guatemala City: Carmen Gadala (502) 2366 2044, Ext 278 Cgadala@worldbank.org WASHINGTON, January 19, 2006 – The World Bank’s Board of Directors today approved a $49 million loan to improve maternal and infant health and to reduce chronic malnutrition among children younger than 2 years of age in rural areas, especially among the indigenous population. The Maternal-Infant Health and Nutrition Specific Investment Loan will help the government of Guatemala implement a national program to improve maternal and infant health. The new project is the World Bank’s first health or nutrition investment project in Guatemala. “This new loan certainly marks a promising beginning that provides important grounds for hope for women and children in Guatemala,” said Jane Armitage, World Bank Director for Central America. “The Bank is currently supporting a similar model in other countries and lessons learned so far will permit this project to truly add value to Guatemala’s efforts to address important social issues such as chronic malnutrition effectively.” Maternal and infant mortality rates and particularly chronic malnutrition are among the highest in the world, and much higher than expected given Guatemala’s per capita income (see Figure 1 below). “Guatemala has shown some improvement in basic health indicators over the past 15 years,” said Marcelo Bortman, World Bank Senior Public Health Specialist and task manager of the loan. “However, with half of preschool children chronically malnourished, Guatemala has – by far – the highest prevalence of chronic malnutrition (stunting) in the region and only a handful of other countries in the world exceed its rates.” The loan supports the government’s development plan “Vamos Guatemala”, which seeks to promote social solidarity, reduce poverty and inequality and promote economic integration; accelerate growth to above the 4 percent observed in the 1990s and ensure the environmental and social sustainability of economic development. The loan also supports the Bank’s Country Assistance Strategy (CAS) for Guatemala, approved in May 2005, which explicitly includes Bank assistance in the nutrition and health sectors. This $49 million Specific Investment Loan (SIL) has a reimbursement period of 17 years, including a five year grace period. - | 
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