CABEI approves new capital increase

La Romana, Dominican Republic, April 26, 2018. - In the framework of its 58th Ordinary Meeting, the Board of Governors of the Central American Bank for Economic Integration (CABEI) approved an increase to its authorized capital from US$5.0 billion to US$7.0 billion in order to strengthen the institution’s credit and financial profile.

The decision is another result of the amendments made to the Bank's Constitutive Agreement in June 2006, which have led to greater support from shareholders; a confirmation of the Bank's preferential creditor status; the incorporation of new members with a high credit rating; and an intensification of efforts to diversify the loan portfolio.

CABEI Executive President Dr. Nick Rischbieth stated that, "This eighth capital increase is an indisputable sign of the support that member countries are providing to the bank, since capital increases represent one of the most evaluated and monitored factors by financial markets and rating agencies."

He added that, "Through this increase, the Bank will be able to materialize new short-term improvements in its credit ratings for the benefit of the member countries and consolidate itself as the most relevant source of funds for the Central American region."

The last capital increase was approved in 2009 and implemented in 2012; it involved an increase from US2.0 billion to US$5.0 billion.