CABEI Implements More Interest Rate Cuts with New Financial Strategy

CABEI Reduces Interest Rates Again

In a significant move benefiting Central American nations, the Central American Bank for Economic Integration (CABEI) has announced a further reduction in its interest rates by 15 basis points. This marks the second consecutive year of such reductions, effective as of June 1, 2025, aimed at enhancing economic conditions across the public sector. This adjusted rate applies to public sector operations under the variable spread interest rate scheme and extends to new projects with non-sovereign guarantees under the same framework.

CABEI's initiative is more than just a simple interest rate cut; it is a strategic enhancement intended to lighten the financial burden on member countries. The current portfolio of disbursed loans, approved loans still pending disbursement, and new contracts under the 2025 Annual Plan totals an impressive $15.6 billion.

Executive President Gisela Sánchez highlighted that these changes come from ongoing efforts to optimize the bank's funding costs, resulting from a proactive and diverse approach in accessing capital markets. In fact, CABEI reached a historic milestone last year with funding surpassing $2.9 billion, the highest annual volume the bank has ever achieved. For 2025, nearly all necessary funding is already secured and comes with even more favorable terms.

Among the notable transactions completed was a global benchmark issuance of $1.5 billion, which set a record for the Bank, alongside its debut in the UK Sterling Market with a £750 million bond, which equates to approximately $931 million. These accomplished transactions align with investors recognizing CABEI's robust financial footing and prestigious