The Central American Bank for Economic Integration (CABEI) and South Korea’s Ministry of Economy and Finance have updated their Korea-CABEI Technical Cooperation Trust Fund (KTC) to make it easier to use and speed up project results, the Bank said. The changes aim to streamline how the fund works and boost its impact across Central America.
Launched in 2020, the KTC gives non-repayable grants for big development projects in the region. Korea has put in nearly US$47 million, and so far the fund has approved US$16.38 million in projects, with US$13.27 million in signed contracts. About 86 percent of those contracts have gone to Korean companies, showing that the money is being spent transparently and on schedule.
“Korea has become a vital partner for our countries,” said Gisela Sánchez, CABEI’s Executive President, at the signing. “This update makes the fund run better and shows we’re serious about managing it openly and getting the most out of every dollar to improve people’s lives.”
The two sides also talked about progress on the Economic Development Cooperation Fund (EDCF), extending project approval deadlines, and possibly adding more Korean funding. CABEI mentioned its recent upgrade to an AA+ rating from S&P, which helps it attract better financing terms.
The Bank said it will keep working to involve more Korean companies in its projects. So far, 11 contracts worth US$459 million have gone to Korean firms, reflecting solid trust and growing cooperation.
The amended agreement strengthens the partnership between CABEI and Korea and moves the fund closer to delivering tech-focused, high-impact financing for the region.
