CABEI and the Republic of China (Taiwan) signed two loan contracts for US$130.0 million
The availability of these resources will allow Micro, Small and Medium Enterprises to use the facilities of the CABEI Support Program. It will also strengthen and promote project initiatives for the public sector in Guatemala, Honduras, Nicaragua and Belize.
Tegucigalpa August 28, 2020.- The Central American Bank for Economic Integration (CABEI) and the Republic of China (Taiwan) through the International Cooperation and Development Fund (TaiwanICDF) signed today two loan contracts to finance eligible operations under the Emergency Support and Preparedness Program for COVID-19 and Economic Reactivation approved by CABEI on March 31, 2020.
The first contract for an amount of up to US$50.0 million will allow CABEI to finance eligible operations within the framework of Component 3 called “Credit for the Financing of Public Sector Operations”. With these resources, it will be possible to finance the rehabilitation and/or construction of shelters, clinics and hospitals, their equipment, as well as the purchase of medicines and supplies necessary for the prevention and treatment of COVID-19.
The second contract for an amount of up to US$80.0 million will allow CABEI to finance eligible operations within the framework of Component 5 called “Facility to Support the Financial Sector for the Financing of Micro, Small and Medium-sized Enterprises (MSMEs) affected by the COVID-19 crisis”. With these resources, it will be possible to finance the working capital and investment needs of MSMEs in order to promote the restoration and generation of new jobs. MSMES in the production sectors of the agri-food chain, renewable energy, energy efficiency, cleaner production, hospitality and tourism, construction, creative industry, media, commerce and service provision companies will be eligible.
Dr. Dante Mossi, Executive President of CABEI mentioned that, “since the beginning of the crisis caused by COVID-19, the Bank has worked closely with its member countries and has made available various financial mechanisms and instruments that add up to date, a total of US$ 2,360.1 million to support the management of the health crisis.
I want to highlight and thank the support that the Republic of China (Taiwan) has provided during the International Health Emergency, our countries have their unconditional support to face and strengthen actions that allow containing the virus and promoting economic reactivation. Their actions have been exemplary”.
He also indicated that on April 1, the Bank’s Board of Directors expressed its support to open a CABEI office in the Republic of China (Taiwan) with the aim of promoting competitiveness in the region, strengthening business relations, promoting and attracting investment, managing potential partners and contributing to the commercial exchange of goods and services between countries.
Ms. Ingrid Hsing, Ambassador of the Republic of China (Taiwan) in Honduras, expressed her satisfaction with the joint work of the International Cooperation and Development Fund (TaiwanICDF) and CABEI in financing the Emergency Support and Preparedness Program for COVID-19 and Economic Reactivation. Through this financing, the interest of this CABEI member country in strengthening its ties and support with the development of the Central American region is reaffirmed.
Mr. Timothy T. Y. Hsiang, Secretary General of the International Cooperation and Development Fund (TaiwanICDF) indicated that the two agreements signed today mark a milestone in the consolidation of cooperation between TaiwanICDF and CABEI and reflect the strengthening of cooperation ties between the Republic of China (Taiwan) and the member countries of CABEI.
The Republic of China (Taiwan) is CABEI’s non-regional partner with the highest shareholding, with 11.48%, and it has been the Bank’s non-regional member country since 1992.
