CABEI approves US$300 million to support Honduran MSMEs affected by COVID-19
9,252 MSMEs will benefit by maintaining employment for 101,772 people through 58 intermediary financial institutions.
Tegucigalpa, May 8, 2020.- Today, the Central American Bank for Economic Integration (CABEI) approved financing amounting to US$300 million for the Program denominated, "Economic Reactivation of Micro, Small and Medium-sized Enterprises (MSMEs) during the COVID-19 Crisis and Post-Crisis in Honduras."
The program involves providing financial resources to MSMEs for job maintenance and economic reactivation, as well as creating a guarantee fund to facilitate access to such credits. As executing organization, Banco Hondureño para la Producción y la Vivienda (BANHPROVI) will channel resources through its first and second tier banks. Currently, BANHPROVI has 58 regulated and unregulated financial intermediaries attending the MSME sector.
CABEI Executive President, Dr. Dante Mossi, stated that, “CABEI assumes the responsibility of supporting its member countries with a streamlined effort, seeking financial alternatives that will strengthen the productive fabric of the countries, preserving employment and promoting the region's economic reactivation.”
Dr. Mossi added that, “The Bank is aware that MSMEs are among the pillars of the Honduran economy and play a leading role in the country's social and economic development. The MSME sector generates seven out of every 10 jobs and contributes approximately 60.0% of the country's Gross Domestic Product (GDP), which is all the more reason to support this effort in its benefit.”.
The implementation of the Program is estimated to yield the following impacts:
• Benefit 9,252 MSMEs with favorable financing conditions.
• Maintain employment of 101,772 people who work in the MSME sector.
• Make guarantee funds available, enabling access to financing for 12,408 MSMEs.
• Channel resources to MSMEs through 58 financial intermediaries.
Tegucigalpa, May 8, 2020.- Today, the Central American Bank for Economic Integration (CABEI) approved financing amounting to US$300 million for the Program denominated, "Economic Reactivation of Micro, Small and Medium-sized Enterprises (MSMEs) during the COVID-19 Crisis and Post-Crisis in Honduras."
The program involves providing financial resources to MSMEs for job maintenance and economic reactivation, as well as creating a guarantee fund to facilitate access to such credits. As executing organization, Banco Hondureño para la Producción y la Vivienda (BANHPROVI) will channel resources through its first and second tier banks. Currently, BANHPROVI has 58 regulated and unregulated financial intermediaries attending the MSME sector.
CABEI Executive President, Dr. Dante Mossi, stated that, “CABEI assumes the responsibility of supporting its member countries with a streamlined effort, seeking financial alternatives that will strengthen the productive fabric of the countries, preserving employment and promoting the region's economic reactivation.”
Dr. Mossi added that, “The Bank is aware that MSMEs are among the pillars of the Honduran economy and play a leading role in the country's social and economic development. The MSME sector generates seven out of every 10 jobs and contributes approximately 60.0% of the country's Gross Domestic Product (GDP), which is all the more reason to support this effort in its benefit.”.
The implementation of the Program is estimated to yield the following impacts:
• Benefit 9,252 MSMEs with favorable financing conditions.
• Maintain employment of 101,772 people who work in the MSME sector.
• Make guarantee funds available, enabling access to financing for 12,408 MSMEs.
• Channel resources to MSMEs through 58 financial intermediaries.