CABEI and TaiwanICDF sign financing agreement to promote women's economic empowerment in Guatemala

Tegucigalpa, April 23, 2025.- In order to strengthen access to financing for women entrepreneurs and businesswomen in Guatemala, the Central American Bank for Economic Integration (CABEI) and the Taiwan International Cooperation and Development Fund (TaiwanICDF) have signed a Managed Co-financing Agreement for up to US$10 million.

The Co-financing Facility will operate under a financial intermediation scheme, channeling disbursements to Intermediary Financial Institutions (IFIs) in Guatemala that have a Global Line of Credit with CABEI. This financing is designed to strengthen financial inclusion and enhance the productive activity of women in Guatemala, promoting job creation and the growth of women-led enterprises in key sectors.

The Facility will have a financial structure in which 70% of the resources, equivalent to US$10.0 million, will be provided by TaiwanICDF, while the remaining 30%, equivalent to US$4.2 million, will be contributed by CABEI through ordinary resources, for a total fund of US$14.2 million.

Thanks to this strategic alliance, CABEI and TaiwanICDF will offer concessional financing conditions so that MSMEs led by women can access credit on more favorable terms. This will include competitive interest rates and affordable terms, enabling women entrepreneurs to expand their businesses, improve their competitiveness, and generate employment in their communities.

CABEI Executive President, Gisela Sánchez, highlighted: "This agreement with TaiwanICDF is a concrete example of how, through strategic alliances, we can transform lives. Empowering women economically not only generates wellbeing in their homes, but also boosts local economies and strengthens the social fabric. At CABEI, we are committed to a more equitable region where women have access to the opportunities and resources they need to prosper.

TaiwanICDF Secretary General, Dr. Yu-Lin Huang, stated, "We are pleased to once again work with CABEI to support women entrepreneurs in Guatemala. This marks another important milestone in our long-standing partnership and reflects Taiwan's continued commitment to promoting gender equality and sustainable development. By enhancing women's economic capabilities, we hope to contribute to more inclusive development outcomes."

In addition, in 2022 TaiwanICDF approved a non-reimbursable contribution totaling US$10 million, of which US$8.3 million was earmarked for the CABEI Guarantee Fund, the rest for promotion and technical assistance activities to strengthen financial institutions in Guatemala in addressing women's credit needs. This contribution strengthens access to credit for women, promoting the use of resources and supporting the implementation of this new Co-financing Facility.

This new agreement reinforces the solid relationship between CABEI and TaiwanICDF, which has resulted in the formalization of more than US$212 million in financing for the region, including US$11.2 million in non-reimbursable funds to support sectors such as MSMEs, health, education, social housing, agriculture, and technology.

With this agreement, CABEI reaffirms its commitment to sustainable development and gender equity in the region, promoting innovative financing solutions that facilitate women's access to economic opportunities and strengthen their role in generating well-being and growth in their communities.