CABEI: More than 6,000 jobs in Nicaragua guaranteed through financial support for the economic reactivation of the MIPYMEs
Loans granted to 240 Nicaraguan companies in 2020 total US$37.9 million.
Managua, February 05, 2021.- The implementation of the Financial Sector Support Facility for the Financing of MIPYMEs affected by COVID-19 has had a positive impact in Nicaragua. In 2020, the Central American Bank for Economic Integration (CABEI) disbursed a total of US$37.9 million to intermediary financial institutions, directly benefiting 240 micro, small, and medium-sized enterprises, which guaranteed the protection of a total of 6,446 direct employees.
As a result of CABEI's efforts, resources were allocated to three financial institutions: Banco de la Producción (BANPRO) for a total of US$22,952,881.93, Banco de Finanzas (BDF) for US$13,009,460.00, and Banco FICHOSA, SA for US$2.0 million.
According to CABEI Executive President, Dr. Dante Mossi, the financing granted represents more than 50 percent of the amount expected to be placed in Nicaragua through this initiative. He recalled that the country has the opportunity to have US$50.0 million available for financial relief.
" MIPYMEs in our region are a productive engine of great importance, most of them were affected by the health crisis and the good news is that this year 2021 we will continue to promote the Financial Sector Support Facility for Financing MIPYMEs for the welfare of our partner countries," emphasized Mossi.
The majority of loans in Nicaragua were concentrated in Managua (57 percent), Chinandega (11.1 percent) and Matagalpa (6 percent), benefiting companies in the agri-food chain production, service provision, general commerce and construction sectors, among others.
The resources were used for the expansion and modification of business models, working capital and payment of obligations, consolidation or readjustment of debts, invoice discounting, start-ups and new ventures, all with the purpose of contributing to economic reactivation.
CABEI resources in Central America for the Facility to Support the Financial Sector for the Financing of MIPYMEs affected by COVID-19 amount to US$350 million, of which US$83 million comes from German Financial Cooperation through KfW and US$28.5 million from the European Union, support from the Government of the Republic of China (Taiwan) through the International Cooperation and Development Fund (TaiwanICDF) and resources such as seed capital, non-reimbursable technical assistance and partial credit guarantees are also contemplated.