VII Conference of Central American and Caribbean Microfinance analyze financing opportunities for green SMEs in the region

With the aim of raising awareness of the experiences with green microfinance, the Financing for the Majority Coordinator of the Central American Bank for Economic Integration (CABEI), Sergio Aviles, recounted to his audience the various activities of the multilateral body by contributing to the economy of the Central Americans by means of exchange and development of the local and regional economy.

By participating in the VII Conference of the Central American and Caribbean of Microfinance, the specialist of CABEI pointed out how the Bank, under the Focus Area Financial Intermediation and Finance for Development, leads initiatives aimed at the financing of Micro, Small and Medium-sized Enterprises (MSMEs) and the provision of financial solutions to the population without access to traditional financing.

The speaker explained to the audience how CABEI manages programs and products aimed at those sectors and segments of the population, in order to promote productive entrepreneurship, achieve greater financial inclusion, contribute to employment generation, have an impact on the development of human capital and improve the living conditions of Central Americans.

Aviles also mentioned that during 2013 CABEI managed to disburse $689.0 million through different brokerage programs signed with multiple intermediary financial institutions which are part of the network of strategic partners of the Bank.

Through financial intermediation, CABEI disbursed US$192 million for programs aimed at building the SMEs, under their different approaches: green SMEs, agribusiness, biodiversity, natural disasters, and other high impact sectors, such as social housing, education, international trade and municipalities

Cumulatively through 2013, the Bank has placed more than US$2.767 million through its network of strategic partners. In this manner it has managed to maintain and create sources of employment in the region (more than 956.000 jobs) through the financing of 659,000 productive units, creating opportunities for low-income households (base of the pyramid).

MSMEs Green Initiative

During his speech, Sergio Aviles explained that in 2013 CABEI continued successfully dabbling in the creation of an efficient and sustainable access to financial products for environmental investments, according to the needs of the MSMES of the region and by means of an initiative called "MSMES Green Initiative".

The official added that this initiative integrates efforts of CABEI, the Government of Germany through the German Development Bank (KfW, by its German acronym) and the European Union. The actions are implemented through different mechanisms aimed at protecting the climate and the environment, by means of the MSMES in Central America, promoting environmental investments in the themes of energy efficiency and renewable energy.

These activities are divided in financing (reimbursable resources) and non-reimbursable resources. As regards financing, the Bank disbursed a total of US$20.2 million. Funds were used to finance three hydroelectric projects in Guatemala and another in El Salvador, as well as the replacement of a fleet of buses to promote energy efficiency.

In Honduras resources were allocated for a hydroelectric project in order to strengthen the renewable energy and funding was awarded to three projects of replacement of transport units with a view to promoting energy efficiency. A hydroelectric project was financed in Nicaragua and in Costa Rica a replacement project for fleet of buses.

En Honduras se destinaron recursos para un proyecto hidroeléctrico a fin de fortalecer la energía renovable y se otorgó financiamiento a tres proyectos de sustitución de unidades de transporte con miras a promover la eficiencia energética. En Nicaragua se financió un proyecto hidroeléctrico y en Costa Rica un proyecto de sustitución de flotilla de autobuses.