CABEI and a US entity sign an agreement to reactivate MSMEs in Central America

Share your love

Tegucigalpa, Jun 21 (EFE) .- The Central American Bank for Economic Integration (CABEI) and the International Finance Corporation for Development of the United States (DFC) signed an agreement for 100 million dollars for the reactivation of micro, small and medium-sized companies from Guatemala, El Salvador and Honduras.

With the agreement between CABEI and DFC, the United States Agency for International Development (USAID) will work with MSMEs and the financial institutions of Guatemala, El Salvador and Honduras, to “maximize the impact of the funds,” said the regional bank in a statement

CABEI Executive President Dante Mossi highlighted the importance of alliances with the DFC and other development finance institutions.

“These alliances will ensure that CABEI’s efforts continue to support MSMEs in their reactivation and commercial growth, allowing them to invest in new lines of products and services, as well as maintain their operations because it is an important sector in the economy, which represents 33% of the region’s GDP and employs 45% of the workforce, ”Mossi explained.

With the support of the International Corporation, CABEI will be able to finance the working capital, business improvements and investment needs of micro, small and medium-sized enterprises (MiPymes) in key sectors such as agri-food, renewable energy, energy efficiency, hospitality and tourism, construction, media, industry and services, added the institution.

USAID will strengthen the business skills of the sector by offering technical assistance to financial institutions and companies in eligible countries, to expand the impact of the initiative.

The assistance will help entrepreneurs to improve their skills. CABEI and USAID will also guide financial intermediaries to tailor their product portfolio to the specific needs of underserved companies.

Read Also   Daimler Truck to go public on December 10, expects margin parity for electric vehicles

The credit line will be available to financial institutions in the three Central American countries, with a focus on granting loans to MSMEs, CABEI added.

The financing is part of the Financial Sector Support Facility for the financing of MSMEs of the CABEI Emergency Program for covid-19 and Economic Reactivation approved by the financial body in March 2020.

Article source:

Share your love