On June 3, a Central American development bank announced that it had authorised an $800 million credit to protect local countries against global fuel price increases, which were triggered in part by Russia’s invasion of Ukraine. As a result of rising petroleum prices, the cost of fertiliser and basic regional commodities like corn and beans has increased in Central American countries.
Dante Mossi, head of the Central American Bank for Economic Integration (CABEI), said in a statement that the activity will have a tangible economic effect on millions of users. The subsidies offset the impact of rising gasoline prices on consumer goods, essential services, transportation, and supply, among other things.
Each of the group’s eight regional affiliates, both founding and non-founding countries, could get up to $200 million in funding, according to the CABEI. As per the statement, the bank, which was founded 61 years ago to finance the growth of Central American countries, may also boost the line of credit based on external investment.