Central American Bank of Economic IntegrationThe Central American Bank of Economic Integration (CABEI) is one of the principal sources of multilateral financing for programmes and projects aimed at the economic, social and institutional development of Central America. It seeks to promote integration and the balanced economic and social growth of the Central American countries. The bank supports programmes and projects that generate productive employment and contribute to improving productivity and competitiveness, as well as raise the region's human development indices.
CABEI was founded in 1960 by the Governments of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. In 1992, in order to strengthen the bank financially and institutionally and tighten relations with the international community, reforms were made to the bank's Constitutive Agreement that allowed for the participation of members from outside the region in the equity capital. Currently there are four non-regional member countries of CABEI - Argentina, the People's Republic of China, Colombia and Mexico.
Sectors financed by CABEI include:
- Support infrastructure for the private sector
- Irrigation, drainage and soil conservation
- Export of non-traditional products
- Tourism sector development
- Industrial development and reconversion
- Small- and medium-size enterprises
- International trade
- Potable water, aqueducts, and sewage and drainage systems
- Social development
- Poverty reduction
- Housing and urban development
- Municipal development
Financial mechanisms and services
CABEI has various mechanisms and criteria for the financing of programmes and projects in the Central American countries.
Public sector financing - Under this mechanism, CABEI channels resources to projects carried out by the Central American governments or autonomous institutions. The credit applications must be backed by a sovereign guarantee or the generic guarantee of the autonomous institution. The application must be supported by a feasibility study carried out according to the guidelines established by CABEI, which can be obtained at the regional offices located in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica.
Financial intermediation through commercial banks and other financial intermediaries - Both public and private banks and other intermediary institutions approved by the Bank's Credit Division can participate in this mechanism to intermediate its resources. CABEI provides resources to the participating financial intermediaries, and they, in turn, finance private sector projects.
Co-financing - When a financial intermediary is unable to provide total financing due to the project's size, limited borrowing capacity or legal constraints, CABEI can provide direct financing for private sector projects. This can involve up to 50% of the project amount, provided that one or more CABEI approved commercial banks or financial institutions guarantee no less than 25% of the required financing. The project owner must provide the remaining 25%.
The percentage to be financed will be determined by CABEI, taking into account the debt capacity of the financial intermediary and the project with regard to the amount to be financed. The amount of CABEI participation, which will not exceed 75% of the total investment required for the project, must be sufficient to ensure proper project execution with its own resources or those provided by CABEI.
The portion of the credit that CABEI provides must be guaranteed by the intermediary itself and not by the user. However the direct portion that CABEI provides must be guaranteed by the entity in charge of the project. CABEI can share guarantees with the participating financial institutions.
To obtain intermediated credit, a client can go to a CABEI approved commercial bank in his/her country to request information about how to apply for credit with CABEI funds. Alternately, the client can go to the bank's offices in the given country to obtain information about available CABEI resources and be provided with the names of approved commercial banks.
To obtain direct/co-financed credit a client should go to the CABEI office in his/her country of origin to obtain the eligibility requirements and the appropriate procedures for obtaining a loan.
Edificio Sede BCIE
Apartado Postal 772
Tel: +(504) 228-2182
Fax: +(504) 228-2183
Web site: http://www.bcie.org
CABEI also has regional offices in Costa Rica, El Salvador, Guatemala and Nicaragua.