In its LX Board of Governors, CABEI presents Institutional Strategy 2020-2024 with expected approvals of US$15.19 billion for development
CABEI contemplates for the five-year period of 2020-2024 an average of annual approvals that will reach US$3,038.0 million, which represents an increase of almost US$1,000.0 million per year compared to the five-year period of 2015-2019.
During the Board of Governors' session, it was reported that the process of the VIII capital increase, from US$5 billion to US$7 billion, has been closed, which shows the confidence of its partner countries and the sustainable financial strength of the institution.
Tegucigalpa, September 3rd, 2020.- The Executive President of the Central American Bank for Economic Integration (CABEI), Dr. Dante Mossi, and financial leaders from the region participated in the 60th Board of Governors of the Bank, a space for dialogue to analyze opportunities for the Central American region in the midst of the health crisis and what measures should be adopted for an economic recovery.
After 60 years of history, CABEI is the main promoter of regional integration
Mossi said that "CABEI has reached its 60th anniversary and it is clear that the institution has become stronger, seeking its own identity as a development bank. After several corporate reforms, the Bank has already positioned itself with important leaderships from the financial perspective, and its contribution to regional development is internationally recognized.”
During CABEI's most important annual event, the executive announced to the governors the new 2020-2024 Institutional Strategy that will serve as a guide for action for the next five years of the multilateral's management. With this strategy, CABEI intends to consolidate its position as the main multilateral source of financing for the development of the countries of the Central American Integration System by means of the elaboration of studies, the identification and financing of regional integration projects with a great transformational impact that will become the main engines of development, investment, and poverty reduction.
With the new five-year strategy we will raise the levels of productivity and competitiveness to effectively integrate the region with the world market and we are already working on the development of a robust portfolio of programs and investment projects for both the public and private sectors so that all economic actors in Central American society can play an active role in the processes of investment and economic and social development.
Increases in investments to activate the economy and avoid unemployment
He highlighted the closing of the process of the VIII capital increase, with which CABEI increases its capital from US$5 billion to US$7 billion, which shows the confidence of its partner countries and the financial soundness of the institution, since the process was carried out in an environment marked by the crisis derived from COVID-19.
This effort allows us to project for the five-year period 2020-2024, an average of annual approvals that will reach US$3,038.0 million, likewise, an average of annual disbursements of US$2,475.0 million and an average net flow of US$723.0 million.
With this capital increase, CABEI's capital from two of its AA partners has also increased by US$450 million, which is equivalent to having incorporated a new AA partner to our institution, thus strengthening once again the financial soundness.
Request for subscription of available capital from the Republic of Argentina.
In this LX AG was authorized the subscription of available capital without increase of the Authorized Capital for an amount of US$46.55 million requested by the Republic of Argentina which constitutes one more expression of support to the financial solidity of CABEI.
LXI AG 2021 will be in Tegucigalpa Honduras
The Governors decided that the sixty-first meeting of the CABEI Board of Governors will be held at CABEI's headquarters in Tegucigalpa, Honduras which will highlight the celebration of the 200th anniversary of Central American Independence. Likewise, the United States of Mexico was approved as the location for the LXII AG in 2022.