The memorandum of understanding (MoU) between UK Export Finance and the Central American Bank for Economic Integration (CABEI) will enable closer economic collaboration and support the development of projects in the region.
This agreement guarantees a closer relationship between both institutions and will help finance major projects in Central America that involve UK exports, supporting businesses and jobs in the UK - a condition of UKEF’s involvement overseas.
The agreement will encourage joint financing of major clean energy, infrastructure and construction projects in the region, bringing in expertise from the UK. Countries that can benefit from the joint financing agreement include the Dominican Republic, Panama, Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica.
UK Export Finance said that governments and businesses in Central America looking to raise funds to develop larger projects can benefit from working with CABEI while also accessing UKEF’s support, aimed at reducing and spreading the cost of financing for buyers of UK exports.
Last year, a number of countries in Central America benefitted from significant increases to UKEF’s country limits as the department has established a greater presence in the region. This means that at least £2.5bn is available for new business in each of Guatemala, Honduras and Panama and £1.5bn for Costa Rica, El Salvador and Nicaragua.
Louis Taylor, chief executive of UKEF, said: “I am delighted today to sign a memorandum of understanding with CABEI. In doing so we have agreed a robust channel of cooperation between our two organisations in order to find and finance projects in Central America involving UK exports.
“Elsewhere in the world, we have transformed lives, supporting healthcare projects in Ghana, clean energy in Taiwan and transportation projects in Egypt. Working with CABEI we can bring this expertise to Central America.”
Dante Mossi, executive president 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 demonstration of our desire to strengthen social and economic ties between both markets.”