On May 5th, officials from the Nicaraguan business sector met with representatives from the Central American Bank for Economic Integration (CABEI), who were given a variety of funding programmes worth up to $400 million. The meeting took place in the bank’s newly opened Managua location.
The CABEI provides financing for the private sector in the region in addition to providing resources to member countries’ governments. This is justified as a means of ensuring a proper balance between the public and private sectors.
At the same time, it helps to limit the financial risks associated with focusing loans on a small number of clients and making them a large portion of their loan portfolio.
The lender’s offer included a $200 million fund as part of a $350 million package designed for “Facilitating Support to the Financial Sector,” allowing them to lend to small, medium, and micro firms. The bank had been unable to complete the later sum’s disbursement in Central America. The credit entity had few objections to focusing these resources in Nicaragua since the deadline for applying for the money had passed.
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