CABEI activates US$200 million credit line for Honduran Central Bank
In the face of the financial crisis due to the rapid expansion of COVID-19, CABEI supports its member countries with contingent measures to shield their economies.
Tegucigalpa, April 21, 2020.- The Central American Bank for Economic Integration (CABEI) approved a contingency credit line for US$200 million to the Central Bank of Honduras (BCH). This is a revolving instrument aimed at strengthening BCH’s position and liquidity management capacity in the context of the health emergency caused by COVID-19. In particular, the resources will be used to strengthen the level of international reserves as a means of ensuring the maintenance of the national currency value, the proper functioning of the payment system and the stability of the Honduran financial system.
CABEI Executive President Dr. Dante Mossi, stated that, “CABEI is the Bank of Central America and was created by Central Americans to attend to the development of the region. During this emergency, the Bank has provided non-reimbursable cooperation funds, donated health supplies and made financial resources available through a Support and Emergency Program for its beneficiary members.”
This intervention falls under the framework of the action plan of the COVID-19 Emergency Support, Preparedness and Economic Reactivation Program, which has been approved by CABEI. The Program includes a Credit component to Support the Liquidity Management of Central Banks with an amount of up to US$1.00 billion and may be granted to each founding member and regional non-founding member country. It is noteworthy that the signing of this instrument complements the monetary policy actions that the BCH Board of Directors has taken to seek macroeconomic stability in the context of the COVID-19 crisis.