CABEI grants contingent credit line to Central Bank of Nicaragua
The contingent line of credit amounts to US$200.0 million.
Managua, September 1, 2017. - At the request of the Government of Nicaragua, the President of the Central Bank of Nicaragua (BCN) and the Central American Bank for Economic Integration (CABEI) Director for Nicaragua signed the eighth renewal of Credit Line No.2002 for an amount of US$ 200.0 million.
The cooperation agreement was signed in the framework of the "Credit Program to Support the Liquidity Management of the Central Banks of the CABEI Founding Countries," which the institution has been promoting since 2009.
The cooperation’s objective is to support possible liquidity deficiencies in the financial system caused by external factors, and thereby strengthen confidence in the Nicaraguan financial system, which is a fundamental objective that the Central Bank pursues in order to stimulate economic rhythm, increase savings and promote private investment. During this extended period, the line has not been used, which reflects the soundness of the Nicaraguan economy and the authorities’ commitment to economic stability.
The credit line will be in force for one year, renewable, in favorable financial conditions, and of immediate use to be determined by the Central Bank of Nicaragua.
