The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-Hoon, “Korea Eximbank”) announced on January 19 that it signed an Action Plan with the Central American Bank for Economic Integration (CABEI), aimed at facilitating the 'Korea Development Co-financing Facility for Central America' established by the Economic Development Cooperation Fund (EDCF) and CABEI.

Korea Eximbank Chairman Lee Duk-Hoon met with CABEI's Executive President, Nick Rischbieth on January 18 at the head office of Korea Eximbank and signed the Action Plan.

In the meantime, on the 17th, Korea's Finance Minister Yoo Il-ho and Executive President Rischbieth met at the government complex in Seoul and signed the 'Korea Development Co-financing Facility for Central America' to finance USD 100 million.

The Action Plan signed by and between Korea Eximbank and CABEI specifies that EDCF joins CABEI's appraisal mission for infrastructure projects in Central America and they share information that might be necessary for potential bidders to participate in the biddings.

Unlike other co-financing schemes arranged jointly with Multilateral Development Banks (MDBs), this Action Plan gives priority to the projects that can be co-fianced by CABEI and EDCF on a tied basis. The tied loans supported by CABEI and EDCF will guarantee that recipient parties procure materials for infrastructure projects in the Central American region from Korean companies.

After signing the Action Plan, Chairman Lee remarked "There have been a lot of difficulties in the past in implementing projects in the region, including sudden retraction of projects which have often been encountered when a government was changed. However, through this Action Plan, Korea Eximbank secured a solid cooperation channel with CABEI, known for outstanding capabilities in project management and extensive project pipe-lines." He added "Through EDCF, we will increase our support for the strategic sectors in the region such as renewable energy, e-government, and health care."

Chairman Lee and President Rischbieth exchanged their opinions about the potential of economic cooperation in the region and the needs for their increased cooperation through expanding interbank credit lines between the two financial institutions.