“Partial Credit Guarantees” is the name of the project that CABEI is preparing to assist companies in accessing regulated capital markets in the Bank's member states.
David Castillo's article at Capitales.com, points that "the plan is similar to a Stand By Credit Letter or Safe Credit Letter. CABEI will be there to guarantee, as it will give the company a special credit, while the investor will receive a guarantee contract.
This coverage offered by CABEI will give companies from Central America, Mexico, Argentina, Colombia and Spain, the possibility to raise capital through the capital markets, by providing betting credit risk ratings, thus making the securities more appealing to investors.
BCIE (Central American Bank for Economic Integration) and the British brokerage firm ICAP will create a joint venture company BCIE-ICAP Capital Markets based in Mexico City.
The objective of BCIE-ICAP Capital Markets is to provide an electronic platform so that Central American companies can sell their financial products and overcome credit limitations affecting the region due to the financial crisis.
In times of credit crunch from the usual sources, it is appropriate to remember that there are other alternatives for financing projects.
The Andean Development Corporation (CAF), the International Finance Corporation (IFC) of the World Bank, the Inter-American Investment Corporation (IIC) of the IDB, and the Central American Economic Integration Bank (BCIE) are all sources of financing for high impact development projects by the private sector which are highly unused by our bankers and businesses.
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