CABEI and its countercyclical role in times of crisis
In compliance with its founding mandate, and in light of the challenges that the global environment has imposed in recent years, the interventions of the Central American Bank for Economic Integration (CABEI) have played a fundamental role in cushioning the impact on macroeconomic stability, stimulating economic reactivation and safeguarding the most vulnerable groups.
Santo Domingo, August 18, 2022 - The Executive President of the Central American Bank for Economic Integration (CABEI), Dr. Dante Mossi, expressed his satisfaction with the results of the recently concluded sessions of the Board of Directors in the Dominican Republic. In this regard, he highlighted the approval of a special fund to promote direct foreign investment in the Central American region, as well as an operation to support the Dominican Republic in the face of rising fuel prices and a development policy operation for Fiscal Consolidation, COVID-19 Economic and Social Mitigation, and Decarbonization in the Republic of Costa Rica.
These interventions provide continuity to the support CABEI has provided to its members to cushion the impact of crises on macroeconomic stability, stimulate economic reactivation and safeguard the most vulnerable groups.
President Mossi highlighted that the negative effects of the COVID-19 pandemic, as well as the economic impacts of the conflict between Russia and Ukraine, have put CABEI's resilience and capacity for innovation to the test. Proof of this are the financing approved between 2020-2022 under the COVID-19 Emergency and Preparedness Program, the Development Policy Operations Program, and the Temporary Program in the Face of Rising Fuel Prices, to mention a few. Aware of the cost of inaction, these programs reflect the Bank's commitment to macroeconomic stability as a necessary condition for sustainable and inclusive development; while reiterating the purpose of combating inequality, reducing poverty, promoting economic growth and job creation, and building resilience to climate change.
When supporting country initiatives, CABEI's flexibility and capacity to adapt has been a competitive advantage over its peers, giving it the countercyclical muscle to respond in a timely manner to changes in the development needs and priorities of its members. In short, these characteristics have strengthened CABEI's relevance and positioning, especially in environments characterized by uncertainty and volatility, as has been evident since 2020.
CABEI's solidity is evidenced by its operating and financial results, its recognition as the best credit rating in Latin America (AA), the outstanding acceptance of its issues in capital markets around the world, the continuous expansion of its network of strategic alliances and its preferred creditor status. In addition, the Founding Countries' agreement to advance payments of the VIII Capital Increase, as well as the willingness to discuss the IX Capital Increase - during the LXII Assembly of Governors in September 2022, underscores the Bank's credibility and the confidence of its members to continue working with us to promote the integration and balanced economic and social development of the region. Likewise, the current situation has strengthened the ties of cooperation and linkage between the Central American region and extra-regional partners.
CABEI is an apolitical institution that respects the decisions of government authorities. The design, approval, monitoring and evaluation of operations are carried out in observance of the principles of development impact, prudent risk management, operational efficiency and financial sustainability.
