The Central American Bank for Economic Integration (CABEI) and the International Development Finance Corporation of the United States (DFC) signed an agreement for $ 100 million for the reactivation of micro, small and medium-sized enterprises in 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 financial institutions in 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 maintaining 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 companies 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 entrepreneurial 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 in tailoring their product portfolio to the specific needs of underserved companies.
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.
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