Republic of Korea Formalizes Incorporation to CABEI

SEOUL, South Korea–(BUSINESS WIRE)–Today, the Central American Bank for Economic Integration (CABEI)
announced the formalization of the entry of the Republic of South Korea
as a new non-regional member. The incorporation will be formalized
through the signing of the instrument of adhesion and the shareholding
agreement.

This incorporation takes place after the modifications made to the
Bank’s Constitutive Agreement in June 2016, which have led to the
incorporation of new members with high credit ratings.

The new member’s entry will allow CABEI to consolidate itself as the
strategic ally of the Central American region, further strengthening its
financial profile. Through this incorporation, capitalization funds will
be captured in order to maintain the Bank as the main provider of
financial resources to the region.

The capital increase is an indisputable signal of the support that this
new member country will provide to the bank, since capital increases
represent one of the most evaluated and monitored factors by financial
markets and rating agencies.

With this capitalization, it will be possible to materialize new
short-term improvements in the Bank’s credit ratings for the benefit of
its member countries, consolidating the Bank as the most important
source of funds for the Central American region.

In that sense, CABEI Executive President, Dr. Dante Mossi, explained
that the capital subscription request of the Republic of Korea amounts
to US$450 million, which will generate an increase in the available
amount of credits by US$2.25 billion; this represents an increase in
CABEI’s portfolio of US$7.00 billion to more than US$9.00 billion; the
resources will be used to promote programs and projects in the region.

Therefore, Korea is one of the non-regional members with the largest
shareholding in the institution and the second Asian country to become a
CABEI member.

CABEI contributes to the financing of development priorities

Korea’s incorporation into CABEI took place today at the headquarters of
the Korean Ministry of Economy and Finance, where President Mossi
highlighted the importance for CABEI of attracting a high credit quality
member such as Korea, which has already generated a positive and
immediate impact on the Bank by strengthening its institutional
governance and improving the benefits of the cooperation schemes agreed
upon between CABEI and Korean institutions in favor of its member
countries.

President Mossi stated that, “We cordially welcome the new member and
are committed to making an exemplary integration that results in a
stronger development Bank, ensuring the region’s sustainable growth.”

Korea is one of the largest economies in Asia and the world; a leader in
technology and innovation; and one of the most successful stories of
global economic development. The Central American region will benefit
directly from its link to CABEI.

Furthermore, President Mossi added that, “As a donor country, Korea is
expected to channel technical assistance and cooperation resources to
support the Bank’s mission of promoting the economic integration and
balanced economic and social development of the Central American region.”

The Republic of Korea has been an observer member of the Central
American Integration System since 2012 and maintains important
commercial links with the region, which will be further enhanced through
its incorporation into CABEI and through the Free Trade Agreement with
Central America; the latter’s negotiation process was supported by the
Bank.

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