CABEI increases credit line by USD8 million to COFINSA to benefit Guatemalan SMEs and generate 4,200 jobs
In addition to working capital, small and medium-size companies will be able to finance assets to improve the adaptation of their businesses to the effects of climate change.
Tegucigalpa, February 20th, 2024.- With the firm purpose of boosting the region's business fabric by facilitating credit resources for small and medium-sized businesses, the Central American Bank for Economic Integration (CABEI) approved an increase of US$8 million to the Global Line of Credit of Financiera Consolidada, S.A. (COFINSA), of Corporación Multi Inversiones (CMI) Capital, reaching a total amount of USD15 million.
CABEI's Executive President, Gisela Sánchez, highlighted that "The alliance we have built with CMI Capital in Guatemala takes us on the right path to continue supporting this important sector of the economy. With this approval we will be supporting close to 70 small and medium-sized entrepreneurs from different productive sectors, who employ more than 4,200 Guatemalans, 20% of whom are women.".
COFINSA will provide financing to small and medium-size enterprises (SMEs) to meet their working capital needs. In addition, and with resources from the CAMBIO II Program, an initiative of CABEI and the Green Climate Fund, credit resources will be made available to implement investments that improve the level of SMEs' ability to adapt to the impacts of climate change and reduce the operational risk of their businesses.
Eligible projects for this Program include agroforestry systems, reduction of water consumption and wastewater management, technological innovation for the production and provision of sustainable services in the agricultural sector and tourism, among others.
This operation will contribute to the achievement of the Sustainable Development Goals (SDGs), specifically SDG8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all, and SDG 13: Take urgent action to combat climate change and its impacts.
