Dominican Republic delegation learns about CABEI financial sector support programs

Tegucigalpa, May 2, 2019.- A technical mission of the Dominican Republic held a meeting with the authorities of the Central American Bank for Economic Integration (CABEI) with the objective of learning about the joint experiences between CABEI and Confianza in the financing of Micro, Small and Medium Enterprises (MSMEs) and entrepreneurs with high growth potential in Honduras.

The delegation included the Dominican Republic's Viceminister of MSME Promotion, Ignacio Méndez; Congreeman and President of the Industry and Commerce Committee of the Dominican Republic's National Congress, José Ulises Rodríguez; Director of Financial Stability and Regulation of the Central Bank of the Dominican Republic, Ramón Rosario García; Technical Director of the Association of Commercial Banks, Manuel González; ADOPEM Bank Risk Director, Iván Moquete; Project Director of the Association of Industries of the Dominican Republic (AIRD); and  Manager of CONFIANZA S.A.-F.G.R. of Honduras, Francisco Fortín.

CABEI Country Manager for Honduras, Manuel Torres, thanked the interest that the attendees have shown to learn about the CABEI financial intermediation model, highlighting the support provided by CABEI to MSME financing and the provision of financial solutions for the population without access to traditional financing.

Finance for development
Mr. Torres highlighted the characteristics of this model, which is aimed at financing investments through the financial sector in order to promote productive entrepreneurship, achieve greater financial inclusion, contribute to the generation of jobs, impact on the development of human capital and improve the living conditions of the inhabitants of the region of the Central American Integration System.

At a regional level during 2018, CABEI disbursed US$1.12 billion through the different intermediation programs signed by the multiple intermediary financial institutions that are part of the Bank's network of strategic allies. In Honduras, CABEI has channeled more than US$126 million through the Honduran financial system to attend investments in Honduran companies.

In particular, greater emphasis was placed on the support that CABEI in conjunction with Confianza is promoting within the framework of the DINAMICA Initiative for the development of the project denominated, "Specialized Technical Assistance for the Formulation of a Service Model for Innovative Entrepreneurs with Reciprocal Guarantee."

This project seeks to create financing options for innovative entrepreneurs by strengthening technical knowledge and skills necessary to develop guarantee products and financial products that can stimulate financial intermediaries to provide access to credit to innovative entrepreneurs and MSMEs.

This support is provided by CABEI within the framework of the "Initiative for the Development of Business Ideas and Acceleration of Central American MSMEs (DINAMICA)," which is a tripartite initiative between the Bank, Financial Cooperation of the Federal Republic of Germany and the European Union through its Latin American Investment Facility.

In the case of Honduras, during the 2013-2019 period, more than US$677 million (equivalent to L.16.59 billion) have been channeled through the Honduran financial sector to support Honduran enterprises.