Cabei extends credit facility for Guatemalan bank

The Central American Bank for Economic Integration (CABEI) has extended a US$10.6mn credit facility to Banco De Los Trabajadores (Bantrab), a worker-owned Guatemalan bank.

The medium-term credit guarantee facility is guaranteed by the Export-Import Bank of the United States (US Ex-Im Bank) and has an availability period of one year. It will be used to increase financing for Guatemalan buyers of US goods and services, with a number of prospective customers already identified.

"We are delighted to partner with these innovative lenders to develop new business for US exporters and their Guatemalan buyers. We've seen some interest in this market on the part of US companies and we expect this financing facility to boost demand," comments John A. McAdams, Ex-Im Bank chief operating officer and senior vice president-export finance.

CABEI, based in Honduras, is a major source of multilateral financing for programs and projects aimed at economic and social development in Central America. It has a loan portfolio of US$3.9bn and approved US$2.9bn in loans to its member countries in 2007.

"Ex-Im Bank plays a key role in helping CABEI meet the needs of Central American importers, for example by filling in when a private bank cannot accept credit risk or does not offer long enough repayment terms," comments CABEI president Harry Brautigam.