CABEI: the relevant development bank for the Central American region disburses US$2.3 billion during 2020

03/12/2020

In record time, CABEI formulated the "Emergency Support and Preparedness Program for COVID-19 and Economic Reactivation", as well as the "Central American Program for Resilient Reconstruction".

In spite of the difficulties of 2020, CABEI managed to materialize its eighth capital increase from US$5 billion to US$7 billion.

 

Tegucigalpa, December 3rd, 2020.- The Central American Bank for Economic Integration (CABEI) will close 2020 by reaffirming its financial support to its member countries with disbursements totaling nearly US$2.3 billion, representing an increase in its regional portfolio by up to US$8 billion.

This was informed by CABEI's Executive President, Dr. Dante Mossi, during the virtual event at the end of the year with the regional press, in which he deepened details about the Institutional Strategy 2020-2024, which will be the action guide for CABEI's next five years of management.

This will make it possible to consolidate its position as the main multilateral financing source for the development of the countries of the Central American Integration System (SICA) through the preparation of studies and the identification and financing of regional integration projects with a major transformational impact that will become the main engines of development, investment, and poverty reduction.

Among the actions developed during 2020, Dr. Mossi highlighted CABEI's role as the effective and timely multilateral financial intermediary for the region. A clear example of this was the formulation, in record time of two months, of the "Emergency Support and Preparedness Program for COVID-19 and Economic Reactivation", for an amount of over US$2.6 billion to mitigate the negative economic and social effects caused by the pandemic.

The program included grants to partner countries for both economic and medical supplies totaling $13 million; the provision of $600 million in concessional loans to finance public sector operations; and $350 million to finance Micro, Small and Medium Enterprises (MIPYME) through the Bank's financial partners.

Another example provided by the Executive President was the recent formulation of the "Central American Program for Resilient Reconstruction" to address the damage caused by tropical cyclones in the order of US$2.5 billion.

"On our 60th anniversary, we have managed to reinforce our role as the region's solid, agile, and efficient financing source, always committed to the well-being of its inhabitants," Mossi told the more than 50 journalists who participated in the virtual event.

Firm steps that leave positive traces in the region

During 2020, CABEI completed its eighth capital increase, from US$5 billion to US$7 billion, a record in the history of capitalization among development multilaterals, as it occurs in the context of a pandemic and demonstrates the high level of commitment, trust, and support from CABEI's partner countries.

Resources were also approved to finance investment projects for all countries in the amount of nearly US$2.456 billion and it is anticipated that disbursements to the region will be in the order of US$2.3 billion by the end of the year.

Currently, a total of 44 programs as well as public and private projects have the multilateral's financial support, which represents an investment of more than US$ 12.8 billion that will support economic development, employment generation, and new opportunities to improve Central Americans' well-being.

 "In CABEI we continue taking the necessary steps to consolidate ourselves as the most solid financial institution in Latin America with an AA rating recognized and ratified by the international risk rating agencies," concluded Dr. Mossi in the framework of the multilateral's 60th anniversary during the closing event of the year with the regional press where he took the opportunity to thank them for their strategic role in society and wished them a prosperous 2021.

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