The Republic of Korea formally requests its incorporation as a non-regional member of CABEI

Tegucigalpa, January 25, 2018 – The Republic of Korea has formally requested its incorporation to the Central American Bank for Economic Integration (CABEI) as a non-regional member.

The Republic of Korea’s proposed US$450 million capital subscription, will position the country as one of the non-regional members with the largest shareholder participation within the Bank while also becoming the second Asian country to join CABEI. The aforementioned capital subscription will generate paid-in capital installments for US$112.5 million in aggregate, to be received over the course of four years, further strengthening CABEI’s already solid capital position.

CABEI’s Executive President, Dr. Nick Rischbieth, stressed that the incorporation of Korea to CABEI will have a positive and immediate impact on the Bank's financial profile given the country’s high credit rating, currently positioned in the "AA" rating category.  He also stated that such incorporation will strengthen the Bank’s institutional governance and enhance the benefits of the cooperation schemes established between CABEI and Korean institutions in favor of its member countries.

Dr. Rischbieth also noted that with Korea being the 11th largest economy in the world, a leader in technology and innovation and one of the most successful stories of economic development worldwide, the Central American region will benefit directly from its incorporation to CABEI. In addition, he stated that, as a donor country, it is expected that Korea will channel technical assistance and cooperation resources to support the Bank's mission of promoting economic integration and balanced economic and social development in the Central American region.

The Republic of Korea has been an observer member of SICA since 2012 and maintains important commercial ties with the region, which will be further strengthened by its incorporation to CABEI and through its Free Trade Agreement (FTA) with Central America, whose negotiation process was supported by the Bank. The implementation of the aforementioned treaty will require financial resources to increase economic activity; as a result, the Bank will play a fundamental role as a facilitator to this process, while also enhancing the connection between Korean and Central American companies.