Spain became an extra-regional CABEI member in 2005. At the close of 2020, it has a subscribed capital of USD280.00 million with capital payments of USD60.00 million and a shareholding of 4.23%.
The partnership between CABEI and Spain provides financial support to the Central American region through the signing of various financial cooperation contracts for an amount of USD546.7 million. Of these funds, USD408.4 million have been channeled through agreements signed with the Instituto de Crédito Oficial (ICO, Official Credit Institute) and the remaining USD138.3 million is provided by the Spain-Honduras Debt Conversion Agreement, held with the Ministry of Economy and Business. During 2020, a financing agreement was signed with ICO for an amount of up to EUR 100.0 million (USD112.5 million) to finance investment and/or liquidity and export/import operations of Spanish companies in CABEI member countries. The loan was signed on June 25, 2020 through a document sharing procedure. Likewise during 2020, a total of USD134.9 million was raised from ICO through the valid agreements between both institutions.
2 million Hondurans benefit from projects under the CABEI-administered Debt Conversion Program for Honduras vis-à-vis Spain
Since its creation in 2006, projects of great economic, social, and environmental impact have been promoted in 13 of the country's departments.
Tegucigalpa, August 10, 2021- With projects to protect the environment, strengthen education, promote renewable energy sources and communication and transportation, the Honduras Debt Conversion Program for Spain, administered by the Central American Bank for Economic Integration (CABEI), supports the country's social development, which is being carried out in two phases.
"The projects contribute to the reduction of poverty in 13 of the country's departments. We are very satisfied with the achievements made and those yet to be achieved, contributing substantially to Honduras' economic and social development. For CABEI, administering this novel mechanism, such as the debt swap, motivates us to continue working together for the benefit of the least favored populations in our countries," said CABEI Executive President, Dr. Dante Mossi.
The first phase, with an investment of L. 1,230 million lempiras concluded in 2019, benefiting 1. 3 million people, achieved among others the construction and equipping of four municipal child care centers in the Central District; of eight basic education centers in Lempira, Olancho, Copán, Santa Bárbara, Ocotepeque, El Paraíso and La Paz and the technical-educational improvement of the University of Agriculture in Olancho, Francisco Morán National Pedagogical University in Francisco Morazán and the University of Forestry Sciences in Comayagua.
It also allowed payment for environmental services to private landowners in Olanchito and Arenal, generating incentives to implement sustainable actions and environmental conservation, as well as the construction and equipment and improvement of sanitary landfills in the cities of Tegucigalpa, Tela, and Gracias Lempira, and the installation and improvement of drinking water systems in the cities of Catacamas and Choluteca.
Meanwhile, the second phase of the Fund is progressing with the execution of US$62.9 million and €15.8 million to benefit more than 790,000 Hondurans in prioritized sectors. Also, the design, construction, operation, and maintenance of the Palmerola International Airport for which, in June 2015, the Governments of Honduras and Spain approved US$53.2 million, generating employment for 271 people.
Spain has been a CABEI extraregional partner since 2005. In 2006, Honduras and Spain designated CABEI as the administrator of the Honduras-Spain Fund.
