The Memorandum of Understanding between UK Export Finance and the Central American Bank for Economic Integration (CABEI) will allow for closer economic cooperation and support project development in the region.
This agreement ensures a closer relationship between the two institutions and will help fund large projects in Central America that include UK exports, support for UK businesses and jobs, a condition of UKEF’s involvement abroad.
The agreement will encourage co-financing of large construction, infrastructure and clean energy projects in the region, drawing on the UK’s experience. The countries that could benefit from the co-financing agreement are the Dominican Republic, Panama, Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica.
The UK’s Export Finance department said Central American governments and companies looking to raise funds to develop larger projects could benefit from working with CABEI while receiving support from UKEF, with the aim of reducing the cost of financing and distributing it to UK export buyers.
Over the past year, several Central American countries have benefited from significant increases in UKEF’s national borders, as the department has established a greater 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.
Lewis Taylor, Director General of UKEF, said: “I am delighted to sign a Memorandum of Understanding with CABEI today. In doing so, we have agreed on a strong channel of cooperation between our two organizations to find and finance projects in Central America that involve UK exports.
“In other parts of the world, we have changed lives by supporting healthcare projects in Ghana, clean energy projects in Taiwan, and transportation projects in Egypt. By working with CABEI, we can take this experience to Central America.
Dante Mossi, CEO of CABEI, said: “Working together we can bring more British expertise to Central America. CABEI is committed to supporting the UK’s ambition in a global UK and this MoU is a testament to our desire to strengthen the social and economic ties between the two markets.
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