CABEI: US$50.0 million for MSMEs affected by the COVID-19 pandemic in Nicaragua
Through various financial institutions, the Bank provides resources to companies with financing terms, terms, and grace periods that encourage economic reactivation in the country.
Managua, August 21, 2020.- As a result of the efforts promoted by the Central American Bank for Economic Integration (CABEI) in the region, more than 700 Nicaraguan Micro, Small and Medium Enterprises (MIPYMES) will have the opportunity to protect employment and reactivate the economy, through the Facility of Support to the Financial Sector for Financing MSMEs affected by COVID-19.
Since July of this year, CABEI with the support of the German Financial Cooperation through KfW and the European Union, has made credit resources available to Central American MSMEs to finance their working capital and investment needs, through its network of financial institutions in the countries for an amount of up to US$350.0 million.
In the case of Nicaragua, the sector of micro, small and medium-sized enterprises will have US$50.0 million available for financial relief, positively impacting some 11,000 direct jobs in the country.
In previous days, the Facility of Support to the Financial Sector for Financing MSMEs was presented by CABEI to different banking institutions, chambers of commerce and business networks such as; CADIN, CONIMIPYME, CETAINIC, FECAEXCA, Network of Entrepreneurs of Nicaragua, CAMEXNIC, among others, who positively valued this important support.
In this sense, the Executive President of CABEI, Dr. Dante Mossi expressed: “through the Facility of Support to the Financial Sector, loans will be granted to MSMEs to compensate the work for the months lost to the health crisis, it will have two years of grace. Additionally, it also includes a technical assistance package to get ahead and coexist with COVID-19”, he said.
With this financing, the multilateral expects to contribute in the production sectors of the agri-food chain, renewable energy, energy efficiency, cleaner production, hospitality and tourism, construction, creative industry, communication media, commerce and service provision companies, among others.