CABEI authorizes US$9.0 million for the economic reactivation of MSMES in Nicaragua
The Financial Sector Support Facility is expected to positively impact more than 700 Nicaraguan Micro, Small and Medium Enterprises and protect about 11,000 direct jobs.
Managua, September 01, 2020.- The Central American Bank for Economic Integration (CABEI), through its Financial Sector Support Facility for the Financing of MSMEs, made the first disbursements in Nicaragua for an amount of US$9.0 million, which contributes to the economic reactivation of a total of 21 enterprises managing to maintain 869 jobs and the rehiring of 32.7% of the personnel laid off since March 11, 2020.
On this occasion, CABEI resources were disbursed to two financial institutions, as is; Banco de la Producción (BANPRO) for an amount of US$4.0 million and Banco de Finanzas (BDF) for an amount of US$5.0 million, with a weighted average rate, considering the total of the two loans granted of 9.44%.
Along these lines, CABEI’s Executive President, Dr. Dante Mossi mentioned that “this is good news for Nicaragua, since these first disbursements benefit the economic sectors; production of the agri-food chain with 25%, service provision companies with 6.3%, general commerce with 59.4%, construction with 3.1% and other sectors affected by the COVID-19 pandemic with 6.3%.”
The Financial Sector Support Facility for Financing MSMEs affected by COVID-19 is provided with resources from CABEI, the Government of Germany through KfW, the European Union and Taiwan ICDF. Likewise, it will be complemented with other types of resources such as seed capital, non-reimbursable technical assistance and partial credit guarantees.
Recently, the facility was presented by CABEI, to different banking institutions, chambers and business networks such as; CADIN, CONIMIPYME, CETAINIC, FECAEXCA, Network of Entrepreneurs of Nicaragua, CAMEXNIC, among others, who have positively valued this important support.