CABEI promotes access to financial services for MSMEs

Tegucigalpa, May 16, 2017. – The experience of the Central American Bank for Economic Integration (CABEI) with regard to the financing of Micro, Small and Medium Enterprises (MSMEs) was one of the themes of the 5th Inter-American Dialogue of High-level MSME Authorities denominated, “Public Policies to Promote Competitiveness, Innovation and the Internationalization of MSMEs," which was held in Puerto Vallarta, Mexico.

Innovative examples of the Bank’s experience include the "DINAMICA Initiative" and the "FEM program.” CABEI Financing for the Majority Unit Coordinator, Mr. Sergio Avilés, explained that CABEI offers programs that will successfully improve MSME access to capital.

He also noted that the DINAMICA Initiative seeks to strengthen the business ecosystem, especially for innovative MSMEs, in order to provide them with adequate access to financial services. Beneficiaries of the non-reimbursable resources include: 1. - Dynamic Business Development Centers (CDED) in projects related to dynamic entrepreneurship and innovation; 2. - MSMEs with innovation or with possibilities of developing dynamic enterprises and 3. - Intermediary Financial Institutions in projects related to the responsible financing of MSMEs.

The DINAMICA Initiative is executed by the Central American Bank for Economic Integration (CABEI) with funds from the German Government, through its KfW Development Bank, and the European Union, through its Latin American Investment Facility (LAIF).

To date, a total of 23 disbursements have been made: 

•8 in Guatemala for US$1,073,429.70; 

•2 in El Salvador for US$1,208,000.00;

•1 in Honduras for US$681,662.70;

•10 in Nicaragua for US$5,927,571.60;

•  2 in Costa Rica for US$1,117,181.60

Likewise, he explained that the Regional Financing Program for Women Entrepreneurs (FEM), which is implemented by CABEI, aims to promote the empowerment and economic autonomy of women by contributing to the process of development and regional economic integration with regard to gender. At the close of April 2017, US$4,562,307.53 had been disbursed.

At the international seminar, the CABEI specialist indicated that the Bank provides revolving global credit lines to Intermediary Financial Institutions (IFIs) in order to be used by means of different disbursements within the Bank’s intermediation programs in force. Currently, CABEI offers 16 financial intermediation programs.

The event was coordinated by the Organization of American States (OAS), the Mexican Ministry of Economy and the National Institute of the Entrepreneur. It was also supported financially by CABEI.