CABEI projects to disburse US$20.0 million for MIPYME affected by COVID-19 in Nicaragua
The agri-food chain production sectors, service providers, general trade, construction, and other sectors affected by the COVID-19 pandemic will benefit.
Managua, October 14, 2020.- As part of the progress of the Financial Sector Support Facility for the Financing of MIPYME in Nicaragua, the Central American Bank for Economic Integration (CABEI), projected at the end of October to continue positively impacting the Micro, Small and Medium Nicaraguan Enterprises affected by COVID-19 with a total of US$20.0 million in disbursements made to intermediary financial institutions.
Initially CABEI resources were disbursed between August and September to three financial institutions, such as; Banco de la Producción, S. A (BANPRO) for an amount of US$4.0 million, Banco de Finanzas (BDF) for an amount of US$7.07 million and Banco Ficohsa for an amount of US$2.0 million, for an overall amount of US$13,071,757.88 million.
Simultaneously and giving continuity to the development of the Financial Sector Support Facility for the Financing of MIPYME the disbursement to financial institutions is programmed at the end of October; Banco de la Producción, S. A (BANPRO) for an amount of US$5.0 million and Banco de Finanzas (BDF) for an amount of US$2.0 million, which contributes to the economic reactivation of more Micro, Small and Medium Enterprises in this Central American country.
CABEI's Executive President, Dr. Dante Mossi, mentioned that "to date, with the first disbursements made in Nicaragua, a total of 869 jobs have been maintained in 21 companies and 32.7% of the personnel dismissed since March 11, 2020 has been rehired. Also, we have met with different banking institutions, chambers and business networks in Nicaragua to clarify their concerns and to continue supporting MIPYMEs.”
In the same way, Mossi urged the Nicaraguan Micro, Small and Medium Enterprises to approach the intermediary financial institutions that have a Global Line with CABEI, to determine the requirements in detail and apply for the funds destined by this organization.
In Nicaragua, the intermediary financial institutions that have a Global Credit Line with CABEI and that are part of the Support Facility are BANPRO, BDF and FICOHSA. While the BAC and LAFISE are in the process of renewing the line, as well as the Financial Institutions PRODESA and COOCARUR.
In addition, the multilateral organization, through the Financial Sector Support Facility, plans to support more than 700 Nicaraguan micro, small and medium-sized enterprises and protect some 11,000 direct jobs.
CABEI's resources for the Financial Sector Support Facility for the Financing of MIPYMES affected by COVID - 19 is for an amount of US$350 million, of which US$83 million comes from the German Financial Cooperation through KfW and US$28.5 million comes from the European Union. Of these, US$50 million is available for each country in the region. An important fact to highlight is the support of the Government of the Republic of China (Taiwan) through the International Cooperation and Development Fund (TaiwanICDF) and resources such as seed capital, non-refundable technical assistance and partial credit guarantees also contemplated.