International Finance Corporation (IFC), the private-investment arm of the World Bank Group, and the Central American Bank for Economic Integration (CABEI), an organization founded by the governments of Guatemala, El Salvador, Honduras, Costa Rica and Nicaragua to promote economic and social development in the region, recently signed an agreement to provide joint advisory services to government projects with private sector participation in CABEI member nations. Through this effort to increase public/private synergies, IFC aims to improve the business climate for micro-, small and medium-sized enterprises (MSMEs) by creating development opportunities and supporting infrastructure improvements.
CABEI Vice President Alejandro Rodriguez said that the mission of the partnership is to “promote the integration and balanced economic and social development of the Central American countries. Boosting the physical, economic and commercial integration through infrastructure projects is part of our objective.” Rachel Kyte, IFC Vice President for Business Advisory Services, echoed the same sentiments saying that the partnership is aimed at “bridging Central America’s infrastructure gap and promoting regional integration, two important priorities for the region’s economic growth. Strengthening infrastructure, the foundation for any economy, will help attract more investment, create jobs, and improve the lives of people across Central America [1].”
By John Howard-Smith, Research Associate
About International Finance Corporation (IFC): A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. In fiscal year 2009, IFC’s new investments totaled USD 14.5 billion.
About Central American Bank for Economic Integration (CABEI): Central American Bank for Economic Integration (CABEI) was founded in 1960 by the governments of Guatemala, El Salvador, Honduras, Costa Rica and Nicaragua to promote economic and social development in the region. CABEI aims to support the development of micro-, small and medium-sized enterprises (MSMEs) through training programs, infrastructure improvements, strengthening of technology and alliances with large multinational agencies such as the World Bank, the Inter-American Development Bank and the International Finance Corporation (IFC). As of 2009, CABEI reported total assets of USD 5.78 billion and estimated return on assets (ROA) of 7 percent.
[1] IFC Press Release: “IFC, BCIE Support Public-Private Partnerships for Growth in Central America”, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=8C2BB62BAA9C75A48525785C00544FF2
MicroCapital’s Microfinance Universe profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)
MicroCapital’s Microfinance Universe profile: Central American Bank for Economic Integration (CABEI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+American+Bank+for+Economic+Integration+(CABEI)
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