CABEI finances program to promote poverty reduction and economic and social exclusion
25.10.2019 14:00 By: BCIE News, Honduras, Pobreza Age: 120 days
This initiative is considered the first tangible regional program that uses multidimensional poverty as a criterion for the geographic selection of its operations.
Tegucigalpa, October 25, 2019.- The Central American Bank for Economic Integration (CABEI) presented the Program for the Reduction of Poverty and Economic and Social Exclusion (PRPEES), whose purpose is to improve the quality of life of the inhabitants of the region by means of the financing of operations aimed at meeting the investment needs of the poorest and most excluded communities in order to contribute to the region's balanced development.
During the event denominated, “Central America Donors Forum 2019” (CADF)”, CABEI presented the main characteristics of the program, which it finances with its own resources of up to US$569.1 million in approvals and with resources from external financing sources in order to increase resource availability.
The presentation disclosed the financial conditions applicable to PRPEES, which will be concessions of up to 35% in the case of the resources provided by CABEI. Program resources from external sources will be granted according to the conditions established by the source for each corresponding resource portion. PRPEES will finance operations requested by governments and decentralized entities with a sovereign guarantee.
This mechanism targets Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Belize, Panama and the Dominican Republic. The eligibility of the operations will be carried out through the application of criteria such as, operations within the geographic areas defined according to the Multidimensional Poverty Maps; the areas of intervention in education, health, housing, employment and social protection; and projects that promote gender equity and the participation of excluded and/or vulnerable people.
The program applies only to new operations, which must include a knowledge generation and sharing component.
PRPEES will grant loans or guarantees. Loans with program resources may complement regular CABEI resources and reimbursable and non-reimbursable resources from external sources to finance preinvestments and co-finance eligible operations.
External financing sources may participate through CABEI or directly to co-finance operations. Resources may also be channeled to carry out preparatory actions and technical assistance, as well as for the formulation of preinvestment studies.