The Memorandum of Understanding (MoU) 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 major projects in Central America that include UK exports, support for UK businesses and jobs, a condition of UKEF’s overseas involvement.
The agreement will encourage co-financing of major construction, infrastructure and clean energy projects in the region, drawing on UK expertise. Countries that could benefit from the co-financing agreement include the Dominican Republic, Panama, Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica.
The British Export Finance Corporation said Central American governments and companies looking to raise funds to develop larger projects could benefit from working with CABEI and at the same time accessing UKEF support, with the aim of reducing the cost of financing and distributing it to UK export buyers.
In the past year, several Central American countries have benefited from significant increases in UKEF’s thresholds as the ministry 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, Chief Executive of UKEF, said: “I am delighted 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 finance projects in Central America that involve UK exports.
“In other parts of the world, we are transforming lives by supporting health projects in Ghana, clean energy 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 UK expertise to Central America. CABEI is committed to supporting the UK’s ambition for a global Britain and this MoU is a testament to our desire to strengthen the social and economic links between the two markets.”
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