The Export-Import Bank of Korea (www. koreaexim.go.kr, Chairman Choi JongKu, "Korea Eximbank") announced on April 2 that it would provide USD 70.59 million EDCF loans to fund the Construction of Bypass Managua Project in Nicaragua carried out by the Nicaraguan government.

Korea Eximbank Chairman Choi JongKu met with Nicaraguan Finance Minister Ivan Acosta Montalvan and signed the loan agreement in Asuncion, where the Inter-American Development Bank (IDB) Annual Meeting was held.

The Construction of Bypass Managua Project is the first road construction project in Latin America that is supported by EDCF.

This project is to construct a two-way bypass with four lanes, aimed at relieving traffic congestion and enhancing the accessibility of peripheral areas.

This project is expected to help Korean companies build on a track record in their civil and construction engineering work and expand to Latin America for more large-scale projects in the future.

Meanwhile, at the meeting held prior to the loan agreement signing ceremony, a representative from the Ministry of Strategy and Finance of Korea (MoSF) stated that sooner or later, MoSF and Korea Eximbank would carry out a program mission and political dialogue in Nicaragua as the first Latin American country to discuss the inclusion of an EDCF-funded medium-to long-term project in the new Nicaraguan government's economic development plan.

Chairman Choi added, "As Nicaragua is the most cooperative EDCF partner country in Latin America, Korea Eximbank is thoroughly reviewing the agenda of relocating our representative office in Latin America from Bogota, Colombia to Managua, Nicaragua".

          * Korea Eximbank has funded USD 270 million (10 commitments) in EDCF loans to Nicaragua to date.

Apart from the signing of the EDCF loan agreement, Chairman Choi will meet with Executive President of Central American Bank for Economic Integration (CABEI), the largest international development bank in Latin America, Nick Rischbieth on April 2 and sign the Interbank Credit Facility Agreement amounting to USD 300 million.

With the conclusion of the agreement, a USD 300 million Interbank Export Credit line will be utilized to support Korean companies seeking to enter into the infrastructure project market in Latin America. Moreover, as the FTA, inked between Korea and six Latin American countries, is anticipated to further boost Korea's exports to the region, Korea Eximbank will step up its efforts to promote Korean firms' export transactions more actively.

Interbank Export Credit is a financing scheme under which Korea Eximbank and a foreign local bank sign an agreement to set up a credit line extended by Korea Eximbank to the foreign bank at favorable terms and conditions, which then re-lends the sub-loan to its local companies having business relationships with Korean companies.