CABEI receives US$100.0 million from DFC to reactivate MSMEs in Guatemala, El Salvador, and Honduras
Resources will be channeled through intermediary financial institutions.
Tegucigalpa October 27, 2021.- The Central American Bank for Economic Integration (CABEI) received a US$100.0 million disbursement from the U.S. Development Finance Corporation (DFC) to channel financing to micro, small, and medium-size enterprises (MSMEs) in Guatemala, El Salvador, and Honduras affected by the pandemic.
CABEI Executive President, Dr. Dante Mossi, highlighted the importance of generating alliances that contribute to boosting the economic reactivation of the region's most important productive sector through special conditions that encourage its economic growth. "The DFC resources will promote the restoration and generation of employment in our region, enabling MSMEs to innovate in their businesses," he added.
The funds will become part of the "Financial Sector Support Facility for financing MSMEs (Component 5)" of the COVID-19 Emergency Support and Preparedness and Economic Reactivation Program and will be made available to small and medium-size entrepreneurs through the countries' intermediary financial institutions.
In addition, they will be complemented by the Guarantee Fund, created by CABEI as a financial instrument to hedge MSMEs' credit risk, which has US$29.1 million available.
The financing agreement between CABEI and DFC was signed in June and is the first between the two institutions, which recognize the need to support MSMEs in an agile and timely manner through financial instruments at a time of uncertainty due to the pandemic, recognizing their fundamental role in the region's economy.