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Wednesday, 17 August 2022 21:13

To strengthen financial liquidity of Central Banks in the region, CABEI increases credit line to US$500 million

Written by Evelyn Alas
To strengthen financial liquidity of Central Banks in the region, CABEI increases credit line to US$500 million

In order to support the liquidity management of the Central Banks of the founding and non-founding regional member countries of the Central American Bank for Economic Integration (CABEI), the multilateral development institution approved the expansion of the Credit Program from US$200 million to US$500 million for each eligible country.

This increase will enable the Central Banks to resolve contingencies and strengthen their liquidity position, contribute to maintaining the value of the national currency, as well as to the smooth functioning of the payment system and the stability of the national financial system.

CABEI Executive President, Dr. Dante Mossi said, "We are very pleased to support our member countries with the increase in the amount of this Central Bank Credit Program, which will support liquidity management and strengthen the levels of international monetary reserves".

The financing, of a revolving nature, may be used partially or totally by each country for any of the purposes defined within the framework of the Credit Program, which complements the monetary policy actions that each country has taken to achieve macroeconomic stability in the current context of the region.

The financial conditions established are at an indicative interest rate of 2.5% plus LIBOR 6 months.

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