CABEI disburses an additional US$ 1.0 million to finance micro and small enterprises in Guatemala
New resources are being channeled to Guatemala to meet the business sector's working capital needs, stimulate the economy and preserve employment.
Guatemala City, February 26, 2021. The Central Americn Bank for Economic Integration (CABEI) through its Financial Sector Support Facility for the Financing of Micro, Small and Medium-Sized Enterprises (MIPYMES), approved a disbursement of US$1.0 million in Guatemala, with the objective of contributing to the adaptation, solvency and transformation of companies as part of their economic reactivation in the face of the pandemic's effects.
These funds are available at Banco INV, S.A. (INV) in Guatemala. (INV) in Guatemala, and their purpose is to provide working capital financing to MIPYMES, with terms of up to 5 years and up to 2 years of grace period for capital payments. MIPYMES operating in sectors related to the agrifood chain, hotels and tourism, renewable energy and energy efficiency, cleaner production, construction, creative industries, and communications, among other sectors affected by COVID-19, are eligible.
CABEI Executive President, Dr. Dante Mossi stated "In addition to this facility's credit resources, CABEI has enabled a Guarantee Fund as a complementary financial instrument for risk coverage, which is a great support for financial system intermediaries, allowing them to channel a greater volume of resources to MIPYMES. The guarantees will have coverage ranging from 25% to 75% depending on the company's size."
This Credit Facility and the Guarantee Fund form part of the Emergency COVID-19 Support and Preparedness and Economic Reactivation Program approved by CABEI in response to the pandemic impacts and to support this key sector of Central American economies.