CABEI and Korea Eximbank signed a Memorandum of Understanding to develop financial mechanisms to increase the flow of resources to the private sector in the Central American region

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This framework will allow CABEI and KEXIM to implement financial mechanisms to finance transactions to procure and promote the acquisition of goods and services of Korean origin and generate a positive impact on the fight against climate change, for example through the financing of electromobility equipment and machinery.

Seoul, July 11 th, 2022. - As part of CABEI's commitment to support initiatives with a climate impact, including the development of environmentally friendly transportation projects that also improve the quality of life of families in the region, CABEI continues to form strategic alliances to attract financial resources to our region.

The signing of this memorandum of understanding will make it possible to provide financial resources through CABEI's network of financial intermediaries for specific eligible projects for the purchase of goods and services from Korean companies, including those in the electromobility sector in the region, thereby contributing to the fight against climate change and increasing trade relations between the Republic of Korea and the Central American region.

CABEI Executive President, Dr. Dante Mossi, stated that "this collaboration will increase the flow of resources for financing these types of operations at attractive interest rates, especially for projects related to electric mobility, in which we will also be able to take advantage of Korea's expertise in this area.

KEXIM Vice President & COO, Mr. Woo-seog Kwon, stated that "It is a great pleasure to have this opportunity to expand our Interbank financing network within Central America. We expect this colloabration will promote to increase trade volumes between Korea and Central America, especially in environmental friendly areas.”

CABEI and Korea Eximbank have developed a relationship since 1992, when the first agreement was signed between the two institutions, demonstrating the mutual interest in promoting trade relations between South Korea and the Central American region.

To date, as a result of this important alliance, CABEI and Eximbank have signed financing facilities amounting up to US$400 million, including support for natural gas projects in the Republic of Panama, with the participation of the Korean company POSCO. 

Likewise, in the context of the pandemic caused by COVID-19, during the year 2020, CABEI and Eximbank signed a new credit facility for US$50.0 million to finance sovereign public sector operations that would allow the countries of the region to increase efforts to prevent, detect and treat COVID-19, as well as mitigate its economic impact in the countries.