CABEI, the bridge between the Republic of Korea and Central America.
Korea is CABEI’s most recent extra- regional member, having finalized its incorporation process in 2020. It is the extra-regional member with the second largest shareholding with 7.67%, a subscribed capital of USD630.00 million and capital contributions of USD33.75 million. The country actively supports Central America through various financial contribution contracts for an amount of USD800.0 million. During 2020, the Bank contracted an On-Lending Facility with the Export-Import Bank of Korea (KEXIM) for USD50.0 million to finance operations under the COVID-19 Emergency Support, Preparedness, and Economic Reactivation Program. Likewise, on August 19 of 2020 a USD 50 million contribution was received by the Korea-CABEI Partnership Single Donor Trust Fund (KTF). A second contribution was received in 2021 for the amount of USD 10 million.
In 2022, CABEI opened its representative office in the Republic of Korea located in the International Finance Center (IFC), Yeouido, Seoul, Korea.
CABEI welcomes Korea as a new member
The Republic of Korea has met all formal CABEI incorporation requirements; therefore, as of today, it is officially an extra-regional member country of the Bank.
Tegucigalpa, January 10, 2020.- The Central American Bank for Economic Integration (CABEI), announced the official incorporation of the Republic of South Korea as a new extra-regional member; such incorporation was materialized with the first share capital payment.
The entry of the new member ratifies CABEI as the strategic ally of the Central American region, given that it will attract and channel external resources. The request for capital subscription of the Republic of Korea amounts to US$450 million, which will generate an increase in the amount of loans available by US$2.25 billion, representing an increase in the CABEI portfolio from US$7.00 billion to more than US$9.00 billion. The resources will be aimed at promoting programs and projects in the region.
CABEI Executive President, Dr. Mossi, highlighted the importance for the Bank of attracting high-quality credit members, such as the Republic of Korea, which has already generated a positive and immediate impact on the Bank's financial profile. In addition, the incorporation will strengthen institutional governance, while improving the benefits of the cooperation scheme agreements signed between CABEI and Korean institutions in favor of the Bank's member countries.
At the event, Dr. Mossi stated that, “CABEI welcomes its new member, reiterating its commitment to implementing an exemplary integration in order to become the strongest development Bank and ensure sustainable growth in the region.”
