CABEI earmarks US$250 million to reactivate youth employment and entrepreneurship in Latin America

Tegucigalpa March 23, 2021.- The Central American Bank for Economic Integration (CABEI) announced today that it approved US$250 million for the "Youth Employment and Entrepreneurship" initiative as part of the "Emergency Support and Preparedness Program for COVID-19 and Economic Reactivation".

According to CABEI Executive President, Dr. Dante Mossi, this initiative seeks to support the employment and entrepreneurship of young Latin Americans with a gender focus. The approval, with concessional resources, reaffirms the Bank's commitment to its partner countries for the accumulation of young human capital affected by the COVID-19 crisis and to promote its recovery.

The purpose of the "Youth Employment and Entrepreneurship" initiative is to provide sovereign-guaranteed resources to governments to finance projects that develop basic job and entrepreneurship skills for young people, increase their job and entrepreneurship opportunities, and reduce their risk factors.

The projects to be financed with CABEI resources will benefit young people of both sexes (with at least 50% participation of women), between the ages of 16 and 29, without relevant work experience, without formal employment, who are not currently studying during the day shift; and who may be at social risk and/or vulnerable. Governments will present as part of their proposals the strategic allies for implementation with formal companies, local financial institutions, foundations, community organizations, state vocational training institutions, comprehensive training organizations, technical centers, among others.

In the design of "Youth Employment and Entrepreneurship" it has been established, on the one hand, that every young person who enters the labor market will receive an economic and non-remunerative incentive; this will be an incentive to remain throughout the process, avoiding early desertion. The partner companies will be able to cover a percentage of the economic incentive for the young people.

On the other hand, it has also been established that all young people who participate in entrepreneurship may be oriented towards local financial institutions that have sources of financing such as seed capital.