The Republic of Korea has become the first member country to establish a Single Donor Trust Fund of US$50Million Dollars at CABEI
Resources may also cover initiatives in the health, education, finance, and other sectors affected by the health emergency caused by COVID-19.
Tegucigalpa, August 14 th, 2020.- The Republic of Korea made the first disbursement of US$10 million to the Central American Bank for Economic Integration (CABEI) to launch the Single Donor Trust Fund which is the 1st time in the history of CABEI.
This operation is carried out within the framework of a Grant Agreement that CABEI signed with the Ministry of Economy and Finance (MoEF) for the granting of non-reimbursable financial cooperation in the amount of US$50 million over five (5) years.
“This is the first of five installments of the US$50 million that will contribute to different economic, financial, and technical studies for the design and execution of important projects to be carried out in the Central American region, especially those that will contribute to further enhance the integration of the region and the sustainable development of the countries eligible for this cooperation. Incorporation of the Republic of Korea to CABEI has enhanced the bank in multiple facets which will greatly benefit the region not only from this Trust Fund but the relationship itself. As the president of CABEI and on behalf of the region I would like to thank the Republic of Korea for this generous contribution. CABEI expects this Trust Fund will play a key role in strengthening the partnership between our region and Korea. It will serve as an excellent benchmark for other member countries.", informed CABEI's Executive President, Dr. Dante Mossi.
The objective of this fund is to identify and prepare projects that incorporate content, technologies, and best international practices, especially from the Republic of Korea, in relevant areas such as Health, Energy, Social, and Productive Infrastructure, Mobility for Cargo, and Transport, Information and Communication Technologies (TICs), and Climate Change Adaptation and Mitigation, among others.
The Republic of Korea officially joined CABEI as an extra-regional partner on December 31, 2019 with a subscribed capital of US$450 million with an equity participation of 7.2% and made its first capital payment on January 10, 2020 for US$28.1 million. In addition, financing agreements have been signed with official resources for public and private sector projects for US$750 million, through which loans have been granted to sectors such as road infrastructure, hospital construction and equipment, and energy through the production and distribution of natural gas, among others.