More than 3,500 Guatemalans keep and recover their jobs with CABEI support

Guatemala City, June 11, 2021.-  A total of 454 companies, 93% of which are micro and small, have accessed financing from the Central American Bank for Economic Integration (CABEI), enabling them to obtain resources to cover the costs of their commercial operations, repay debt, and pay salaries and obligations to suppliers.

Part of these business loans will be guaranteed by CABEI through the issuance of guarantee certificates, with the objective of supporting MIPYMEs that do not have sufficient assets to back the debt.  This complementary financial product of CABEI credit risk coverage will provide greater support to banking institutions to leverage new loans in favor of MIPYMEs that have been affected by the pandemic.

In reference to the above, CABEI Executive President Dr. Dante Mossi explained that "An important characteristic of this line of financing is that the applicant companies must demonstrate how the loan will support the retention or re-hiring of at least 70% of the total number of employees who were affected after the pandemic was declared. Undoubtedly, these results in Guatemala reflect how CABEI is providing timely support for the economic reactivation and income generation of MIPYMEs and the people who work in them”.

The positive impacts generated in these companies as a result of the financing are translated into the protection and recovery of employment, benefiting 3,547 people working in 19 of the 22 departments of the country in productive sectors such as commerce, service provision, agri-food chain, creative industry, among others.

The line of credit and the guarantee fund come from CABEI's MIPYMES Financing Support Facility for the Financial Sector. To date, a total of US$17 million has been disbursed in Guatemala to three intermediary financial institutions: Banco Industrial, BANRURAL and Banco INV. S.A.