UK Export Finance has launched a new partnership with the Central American Bank for Economic Integration to support the development of projects in the region.
- The Memorandum of Understanding (MoU) will allow for closer economic collaboration between the UK and Central America.
- The countries that can benefit from the joint funding agreement are the Dominican Republic, Panama, Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica.
- The partnership will focus primarily on supporting large infrastructure, clean energy and construction projects.
UK Export Finance (UKEF) today (12 August) signed a historic partnership with the Central American Bank for Economic Integration (CABEI), the leading development bank in Central America and the highest rated borrower in Latin America . The deal will encourage joint financing of large clean energy, infrastructure and construction projects in the region that require UK expertise.
This cooperation agreement guarantees a closer relationship between the two institutions and will make it possible to finance major projects in Central America involving British exports, supporting businesses and employment in the United Kingdom: a condition of the UKEF’s commitment abroad.
Governments and businesses in Central America seeking to raise funds to develop larger projects can benefit from collaborating with CABEI while benefiting from the support of UKEF, aimed at reducing and spreading the cost of financing for buyers. British exports.
Over the past year, a number of Central American countries have benefited from significant increases to UKEF’s national limits as the department has established a larger presence in the region. This means that at least £ 2.5 billion is available for new business in Guatemala, Honduras and Panama and £ 1.5 billion for Costa Rica, El Salvador and Nicaragua.
Central America is home to some of the fastest growing economies in the world and trade between the UK and Central America was over £ 1.7 billion in 2020. This MoU strengthen these trade ties and builds on the UK-Central America Trade Association Agreement signed. in August 2019.
Louis taylor, the Director General of UKEF said:
I am delighted today to sign a memorandum of understanding with CABEI. In doing so, we have agreed on a strong channel of cooperation between our two organizations to find and fund projects in Central America involving UK exports.
Elsewhere in the world, we’ve transformed lives by supporting healthcare projects in Ghana, clean energy projects in Taiwan, and transportation projects in Egypt. By working with CABEI, we can bring this expertise to Central America.
Dante Mossi, executive chairman of CABEI said:
By working together we can bring more British expertise to Central America. CABEI is committed to supporting the UK’s ambition for a global Britain and this MoU is a demonstration of our willingness to strengthen social and economic ties between the two markets.
UK Export Finance is the UK’s export credit agency. It exists to ensure that no viable UK export lacks funding or insurance in the private market, providing finance and insurance to help exporters win, fulfill and get paid for export contracts.
UKEF has a global network of 15 International Export Finance Executives (IEFEs) based in strategic business markets in Latin America, South Asia, the Middle East, Asia-Pacific and Africa.
The IEFE network is a key driver of business development activity and local UKEF representatives in the region are Diego Folino based in Mexico City and Camilo Neira in Bogota.
CABEI was established in 1960 as the region’s financial arm for integration and development. Its resources are continuously invested in projects with an impact on development to reduce poverty and inequalities, strengthen regional integration and the competitive integration of its partners in the global economy, paying particular attention to environmental sustainability. . CABEI is based in Tegucigalpa with offices throughout Central America.
The financial strength of CABEI as the best credit in Latin America is supported by its high credit rating assigned by the various international agencies: Standard & Poor’s with a rating of AA, Moody’s with a rating of Aa3 and Japan Credit Rating with AA. (https://www.gov.uk/government/news/uk-signs-partnership-in-central-america-to-boost-trade)
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Last modification: September 4, 2021