CABEI approves program to mitigate negative effects of fuel price increases on the economies of the region's countries
The initiative, known as the "Temporary Fuel Crisis Support Program," has a total amount of US$800.0 million for the countries of the region.
Tegucigalpa, June 3rd, 2022.- In the face of soaring global fuel prices, the Central American Bank for Economic Integration (CABEI) approved indicative financing of up to US$800.0 million for the "Temporary Support Program for Rising Fuel Costs in the Founding and Regional Non-Founding Countries".
"As the Central Americans' Bank, we are providing an immediate response to the problems that afflict our countries. This operation will have a direct impact on the economies of millions of consumers, since the subsidies will mitigate the impact of rising fuel costs on consumer products, basic services, transportation and supplies, among others," said CABEI Executive President Dr. Dante Mossi.
The initiative seeks to protect the purchasing power of the Central American population. At the same time, it seeks to strengthen the expectations of economic agents and the credibility of monetary policy management, both of which are fundamental elements in consumption and investment decisions.
"The current increase in oil prices adds to the negative effects that the COVID-19 pandemic generated in the economy, misaligning global supply and demand through the disruption of supply chains. In this context, our support extends the countercyclical capacity of monetary authorities to manage rising inflationary pressures," added Dr. Mossi.
Of the amount approved for the Program, each founding and non-founding regional country may receive up to US$200 million in financing from CABEI's regular resources, which may also be increased based on the participation of external funding sources according to their respective guidelines.
CABEI takes the corresponding measures to ensure due diligence at all stages of its projects and programs. Disbursements will be made in accordance with the supervision, follow-up and control activities for the adequate use of resources, as well as the Bank's procurement policies, which include the contracting of an independent audit, allowing for close and continuous follow-up by internal and external control entities.
Likewise, CABEI has adopted as a basic principle, zero tolerance for Prohibited Practices, unethical situations or non-compliance with regulations, for which reason it maintains at its disposal the means to file complaints, where natural or legal persons may do so.