CABEI promotes Regional Credit Guarantee Program for Green Initiatives

Tegucigalpa.- A Regional Credit Guarantee Program for up to US$1.49 million has been established to attract biodiversity-friendly investment to Central America in support of micro, small and medium enterprise (MSME).

The program is promoted in the region by the Central American Bank for Economic Integration (CABEI) through its Central American Markets for Biodiversity (CAMBio) Project.
 
The Regional Biodiversity-Friendly Guarantee Program aims to encourage MSMEs to develop and invest in projects that support biodiversity conservation in the Central American countries. The Program will be carried out by the network of intermediary financial institutions (IFIs) operating in the region with CABEI’s backing.

Under the program, CABEI will provide credit guarantees to eligible local banks in each Central American country to cover loans from investors in order to promote direct investment in Central American MSMEs.

For the execution of this program, the Global Environment Fund (GEF) in partnership with CABEI has approved an amount of up to $US1.49 million to strengthen green investment in the MSME sector.

CABEI and GEF have implemented various economic development programs in Central America; particularly a Fund for Strengthening the Technical and Management Capacities of Biodiversity-Friendly MSMES (BF-MSMEs), which to date has benefited more than 6,366 BF-MSMEs.

Through these credit, technical assistance and training programs, CABEI and GEF have contributed to restoring the productive capacity and increasing the incomes of many families. This sector is very important for the Central American economy because it fosters job creation.