CABEI and Korea strengthen regional development and integration

With the recent signing of the adhesion document, the Central American Bank for Economic Integration (CABEI) has taken another important step in the process of incorporating the Republic of South Korea as a non-regional member.

Subsequent to making its first payment, which represents 25 percent of the total subscription contribution amounting to US$450 million, the Asian country will become a new member and one of the non-regional members with greater shareholding within the institution; South Korea will be the second Asian country to become a CABEI member.

As a relevant and historical result for the Bank, the incorporation of Korea will further strengthen its financial profile given the high credit rating of that country, as well as reinforce institutional governance and foster the benefits of the Central American Free Trade Agreement, whose negotiations had the financial support of the Bank.

In this regard, CABEI Executive President, Dr. Dante Mossi, explained that “This incorporation is essential to continue consolidating the Bank’s financial soundness, investing in projects with an impact on development and strengthening the competitive position of the countries in the world economy.”

The incorporation of Korea to CABEI will also expand economic cooperation with the SICA countries through a promotion plan in sectors such as commerce, energy, environment and infrastructure; improve the schemes of Public-Private Partnerships in conjunction with Korean private companies, and promote new co-financing opportunities in local and regional projects.

Original source: BCIE
Published on 14 January 2019