CABEI increases resources to promote economic reactivation of MIPYMEs by up to US$650.0 million
MIPYMEs are the main sources of employment in the region and their support will accelerate the economic recovery process in Central American countries.
Tegucigalpa, February 8, 2021.- The Central American Bank for Economic Integration (CABEI) approved an increase of up to US$350.00 million in its Financial Sector Support Facility for the Emergency Support and Preparedness for COVID-19 and Economic Reactivation Program.
During 2020, CABEI disbursed US$293.0 million to 23 financial institutions in the region under the Financial Sector Support Facility for the Financing of MIPYMEs. These resources were aimed at providing financial support to MIPYMEs to sustain the employment base and reactivate the economy, which was accompanied by the creation of a Guarantee Fund to facilitate access to these loans.
The financial conditions of this Facility include a term of up to 5 years with a grace period of up to 2 years and is backed by a Guarantee Fund coverage between 25% and up to 75% for loans granted to MIPYMEs.
Dr. Dante Mossi, CABEI Executive President, mentioned that "continuing to support MIPYMEs in this emergency caused by the pandemic is fundamental to restore the jobs that were lost at the beginning of the pandemic and also to generate greater opportunities for growth in our economies, given the high impact it has on sectors such as agriculture, tourism, services, and others".
In 2020 CABEI mobilized resources from external sources for US$340.8 million to support the implementation and execution of this Credit Facility focused on the MIPYME sector.
The increase in the availability of resources for this Facility is a response to the increased demand for resources from the financial sector to expand the coverage of MIPYMEs and to have sufficient liquidity to respond to short-term requirements, so that they can extend loans to help companies strengthen their working capital and finance the economic reactivation process of MIPYMEs.
"The objective is to accelerate the recovery of economies, as well as to promote sustainable and equitable economic growth" concluded Dr. Mossi.