ICO and CABEI sign agreement to finance Spanish companies and projects in Central America
The agreement covers the potential financing, co-financing and guarantee of common-interest projects, chiefly for SMEs and large projects.
Washington, 11 October 2014.- The Central American Bank for Economic Integration (CABEI) and Instituto de Crédito Oficial (ICO), have today signed a Memorandum of Understanding to collaborate on joint financing for transactions involving Spanish companies in Central America, as well as exports.
CABEI's Executive President, Dr. Nick Rischbieth and ICO Chief Financial Officer, Fernando Navarrete, signed the document establishing guidelines under which both organisations will collaborate to establish a cooperative partnership to benefit human development and the fulfilment of the Millennium Development Goals (MDGs).
"CABEI has a successful history of more than 23 years of cooperation with ICO", noted Rischbieth, adding that the first loan agreement was signed in 1991. "Since then, ICO, the Spanish State-owned bank, has channelled US$194.3Mn in various CABEI schemes and programmes," the most notable of which are the channelling of resources to support MSMES and infrastructure in the region", he added.
"This agreement is aimed at formalising a non-exclusive framework of cooperation between ICO and CABEI, as well as facilitating the collaboration between the parties for the promotion of programmes and projects that foster such cooperation, and in particular, support the development of specific activities and projects", highlighted CABEI's Executive President Dr. Nick Rischbieth.
Both parties agreed to sign a Memorandum of Understanding aimed at promoting business competitiveness and fostering economies of scale in the region.
With 54 years experience, the Central American Bank for Economic Development is the region's main lender and strategic partner, focusing on improving the quality of life of Central Americans by promoting balanced economic and social development, regional integration and the sustainable use of its natural resources.
Based in Tegucigalpa and with offices across the region, the CABEI was founded in 1960 by Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica. Recently, the Bank incorporated as extra-regional members: Mexico, the Republic of China (Taiwan), Argentina, Colombia, the Kingdom of Spain, Panama, Dominican Republic and Belize as a beneficiary, non-founding country.
CABEI's financial strength is recognised by its four "A" ratings, issued by the following international rating agencies: Standard & Poor's "A"; Moody's "A1"; Fitch Ratings "A"; and Japan Credit Rating "AA-". About Instituto de Crédito Oficial (ICO)
Instituto de Crédito Oficial is a State-owned bank attached to the Ministry of Economy and Competition through the Secretary of State for the Economy and Business Support, and is treated as a State Finance Agency. As a State-owned bank, ICO grants loans to finance investment operations and liquidity at companies both within Spain and abroad, either via financial entities through second-floor loans or by direct financing programmes. Also, as a State Finance Agency, ICO manages the Spanish Government's official financing instruments intended to promote exports and aid development.