Guatemalan micro and small enterprises financed with CABEI resources protected more than 8,500 jobs during the pandemic
Of the US$32 million disbursed for loans to MSMEs in the country, 40% met the working capital needs of businesses managed by women.
Guatemala City, June 29th, 2022.- As a result of access to credit on favorable terms and having a complementary banking product to support such financing, in the last two years 2,258 Guatemalan micro and small businesses have continued to operate despite the adverse effects of the pandemic, managing to meet their obligations and protecting more than 8,500 jobs in rural and urban Guatemala.
This thanks to the MSME Support Facility, a program promoted by the Central American Bank for Economic Integration (CABEI) since 2020, which through its financial intermediary network has channeled US$32 million in support to this important sector of the economy in 22 of the country's departments with the support of three intermediary financial institutions.
CABEI's Executive President, Dr. Dante Mossi, highlighted: "In addition to the credit line, we made a complementary credit risk coverage product available to the banks as a support that would allow them to leverage new loans in favor of companies. In Guatemala we were able to place US$13.2 million from the Bank's Facility Guarantee Fund, of which US$4.8 million went to companies managed by women.”
He also commented that, through the Facility, which has resources from CABEI and strategic allies such as the Government of Germany through KfW, UN Women, the European Union and ICDF Taiwan, financing was granted to a total of 5,309 MSMEs at the regional level, 42% of which are located in Guatemala, and are categorized by company size into micro and small.