Tuesday, 29 June 2021 02:56

CABEI highlights US$2.956 billion in financing to support MSMEs

Written by Alondra Gutiérrez

The Central American Bank for Economic Integration (CABEI) has historically benefited approximately 1.2 million Central Americans with programs to support micro, small, and medium-sized enterprises (MSMEs).

As part of its commitment as the region's effective and timely financial intermediary, the Central American Bank for Economic Integration (CABEI) commemorates the International Day of Micro, Small and Medium-Sized Enterprises (MSMEs) with historic financing totaling US$2.956 billion, to benefit the competitiveness and productivity of this sector.

This represents 720,000 loans channeled through CABEI's network of allied intermediary financial institutions, which positively impacted 1.2 million Central Americans, 56% of whom are women.

"We commemorate this day by recognizing the work of MSMEs as one of the main sources of economic dynamism in our region. Of the total of 1.3 million existing companies, 99% are MSMEs and generate 45% of the sources of employment, which is why our commitment to support them has been historic and now more than ever in the current economic situation", said CABEI Executive President Dante Mossi.

These resources have been channeled by CABEI through various financial intermediation programs aimed at generating new enterprises, supporting MSMEs for renewable energy generation projects, energy efficiency, cleaner production, women's entrepreneurship, agribusiness, among other sectors.

The financial institution also provided an immediate response in 2020 for Covid-19, CABEI created the Facility to Support the Financial Sector for the Financing of MSMEs, which aims to contribute to the adaptation, solvency and transformation of the sector as part of the economic reactivation.

This facility offers lower rates than conventional ones, with ample grace periods and the possibility of accessing a Guarantee Fund in the event that the applicants do not have assets to back all of their loans, always through the financial institution.

The financial resources and non-reimbursable technical assistance granted to the MSME sector have been supported by CABEI's strategic allies such as the Government of Germany through KfW, the European Union and Taiwan's International Cooperation and Development Fund (ICDF), among others.

The International Day of Micro, Small and Medium Enterprises is celebrated every june 27 to recognize the importance of small enterprises in the Sustainable Development Goals and the need to facilitate access to credit and financing.