CABEI receives capital payments made in advance in order to strengthen its credit capacity amid the current emergency of COVID-19 and the effects of hurricanes Eta and Iota
Both the Kingdom of Spain and the Republic of Korea have made the first capital payment corresponding to their shareholding in line with CABEI’s VIII Capital Increase, in advance, for a combined amount of US$15.6 million
Tegucigalpa, Honduras January 4, 2021- As a sign of their commitment to CABEI and to the countries of the Central American region, the Kingdom of Spain and the Republic of Korea have made payments of the first capital installment linked to the bank’s VIII Capital Increase, which came into force last July 2020, in advance for an amount of US$10.0 million and US$5.6 million respectively; The aforementioned payments had to be made during the year 2021, however, the governments of these two extra-regional partners decided to make the due transfers last December.
“This comes to show the quality of partners CABEI has, their connection and understanding of the needs of the Central American region and the role the bank plays amid the crises currently faced as a result of the COVID-19 pandemic and the adverse effects of hurricanes Eta and Iota”, Executive President Dr. Dante Mossi pointed out.
Dr. Mossi added that “we have had a historic year based on the support that the bank has provided during these challenging circumstances, first with the approval of the Emergency Support and Preparedness Program for COVID-19 and Economic Reactivation for US$2,360.1 million and later with the launch of the Central American Resilient Reconstruction Program for US$2,513 million, with financial solutions that include resources for technical cooperation and financing for both the public and private sectors, and the identification and mobilization of external resources for an aggregate amount of US$492.0 million.
We have also been pioneers in the response that multilateral banking has provided to countries, being the first development bank to carry out a general capital increase from US$5,000 to US$7,000 million amid the crisis of the current pandemic, and approving a Program to support countries in providing financing for the procurement of COVID-19 vaccines for US$400 million and the first multilateral issuer in the capital markets to launch thematic bonds related to the vaccine for US$100 million, in this case in Asian geography. Without a doubt, rapid responses are key at this time to adequately serve our beneficiary countries”, Mossi emphasized.
Finally, Dr. Mossi mentioned that “this support received from the Kingdom of Spain and the Republic of Korea, through these capital payments made in advance, is an example of how the bank is shaping up with a sound credit and financial outlook for the year 2021, with the highest risk rating in all of Latin America, an AA rating, and with an approval program for approximately US$3,300.0 million to address priority areas in sectors such as health, productive infrastructure, climate change, energy, among others. This year we will also see how CABEI representative offices will be established in Taiwan, Korea and Spain, as part of our efforts to strengthen relations with extra-regional partners for the benefit of the Central American region.”