CABEI and LAFISE BANCENTRO sign US$120,000.00 technical cooperation agreement

Managua, October 2, 2014. - Representatives of the Central American Bank for Economic Integration (CABEI) and the LAFISE BANCENTRO Bank signed a US$120,000.00 technical cooperation agreement to partially finance the execution of a “Design of a LAFISE BANCENTRO Bank Green Credit Program.”

The technical cooperation is being provided by the Green MSME Initiative, a tripartate effort of CABEI, the German government’s KfW Development Bank and the European Union, in the framework of its Latin American Investment Facility (LAIF), to promote environmental investment in energy efficiency and renewable energy projects for MSMEs and small project developers in the countries of the Central American Isthmus.

The project’s objective is the “Design of a LAFISE BANCENTRO Bank Green Credit Program” in order to  develop financial mechanisms that permit the Bank’s clients to invest in energy efficiency, renewable energy and clean production projects through the implementation of technologies and practices that improve the clients’ profitability and are likewise environmentally friendly.

The LAFISE BANCENTRO Bank is committed to continue working to contribute to climate and environmental protection, acting as an agent of change by supporting sustainable development processes, strengthening clients’ competitiveness and reducing risks. The project is directed at the Bank’s target clients to provide them with financing for the purchase of energy efficient equipment in order to reduce electricity consumption and to promote the use of renewable energy technologies that can provide MSMEs with clean energy.
 
The Green MSME Initiative also has US$44.5 million in financing for small-scale renewable energy and energy efficiency projects; the funds are channeled through CABEI’s extensive network of Intermediary Financial Institutions. There is also a US$4.5 million technical cooperation program that provides technical assistance to financial institutions, energy audits for MSMEs and feasibility studies for renewable energy projects, in addition to promoting and raising awareness about energy efficiency and green energy.