Identifier
Created
Classification
Origin
06BELIZE844
2006-09-26 20:08:00
UNCLASSIFIED
Embassy Belmopan
Cable title:
BELIZE JOINS CENTRAL AMERICAN BANK FOR ECONOMIC
how-toVZCZCXRO1077 RR RUEHGR DE RUEHBE #0844 2692008 ZNR UUUUU ZZH R 262008Z SEP 06 FM AMEMBASSY BELIZE TO RUEHC/SECSTATE WASHDC 0516 INFO RUEATRS/DEPT OF TREASURY WASHDC RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE RUCNCOM/EC CARICOM COLLECTIVE RUEHME/AMEMBASSY MEXICO 2575 RUEHBJ/AMEMBASSY BEIJING 0070 RUEHBU/AMEMBASSY BUENOS AIRES 0009 RUEHBO/AMEMBASSY BOGOTA 0436 RUEHMD/AMEMBASSY MADRID 0071
UNCLAS BELIZE 000844
SIPDIS
SIPDIS
DEPT FOR WHA/CEN (MACK)
TREASURY FOR IA/WHA (LEVINE)
E.O. 12958: N/A
TAGS: ECON EFIN BH
SUBJECT: BELIZE JOINS CENTRAL AMERICAN BANK FOR ECONOMIC
INTEGRATION
REF: Belize 694
UNCLAS BELIZE 000844
SIPDIS
SIPDIS
DEPT FOR WHA/CEN (MACK)
TREASURY FOR IA/WHA (LEVINE)
E.O. 12958: N/A
TAGS: ECON EFIN BH
SUBJECT: BELIZE JOINS CENTRAL AMERICAN BANK FOR ECONOMIC
INTEGRATION
REF: Belize 694
1. On September 25, local media reported that the GoB - in an
effort to access more capital from foreign sources - indicated its
intent to join the Central American Bank for Economic Integration
(CABEI). With over $4.5 billion in assets and an additional $5
billion in cash available to its member countries, CABEI's mission
is to reduce poverty, promote globalization, and encourage economic,
commercial, and financial integration in Central America. (Note:
all figures are in U.S. dollars. End note).
2. During a televised interview, Prime Minister and Minister of
Finance Said Musa stated that Belize was joining CABEI at a time
when the country is "focused on macroeconomic stability while trying
to increase the levels of social investment in Belize." Musa
envisions that CABEI funds will be used to develop projects
according to the bank's goals.
3. According to its constitution, in order to join CABEI and access
its capital, prospective members must first purchase shares of the
bank priced at a nominal value of $10,000 per share. The paid-in
portion of a prospective member's purchased shares must be paid in
U.S. dollars, in four annual, equal, and consecutive payments. The
callable portion shall be payable on demand at any time to meet the
bank's obligations. Local media reports that the current
subscription fee of $25 million was reduced by 25 percent to
$6,250,000 for the GoB, with the first installment of $1,562,000 due
in 30 days. The remaining 75 percent - or $18.75 million - is
callable and represents the maximum funding the GoB can request from
CABEI.
4. CABEI was founded in 1960 by Guatemala, Honduras, El Salvador,
Nicaragua, and Costa Rica and claims to be the largest financial
institution in Central America. During its 46-year existence, the
bank has been involved with rural and small business development,
built relationships with other international financial institutions
(e.g., the World Bank, the Inter American Development Bank),and
worked to harmonize banking regulations in the region. In 1989, the
founding member countries amended CABEI's constitution to allow for
the participation of countries outside of Central America. Since
then, Mexico, China, Argentina, Colombia, and Spain have become
non-regional members.
HILL
SIPDIS
SIPDIS
DEPT FOR WHA/CEN (MACK)
TREASURY FOR IA/WHA (LEVINE)
E.O. 12958: N/A
TAGS: ECON EFIN BH
SUBJECT: BELIZE JOINS CENTRAL AMERICAN BANK FOR ECONOMIC
INTEGRATION
REF: Belize 694
1. On September 25, local media reported that the GoB - in an
effort to access more capital from foreign sources - indicated its
intent to join the Central American Bank for Economic Integration
(CABEI). With over $4.5 billion in assets and an additional $5
billion in cash available to its member countries, CABEI's mission
is to reduce poverty, promote globalization, and encourage economic,
commercial, and financial integration in Central America. (Note:
all figures are in U.S. dollars. End note).
2. During a televised interview, Prime Minister and Minister of
Finance Said Musa stated that Belize was joining CABEI at a time
when the country is "focused on macroeconomic stability while trying
to increase the levels of social investment in Belize." Musa
envisions that CABEI funds will be used to develop projects
according to the bank's goals.
3. According to its constitution, in order to join CABEI and access
its capital, prospective members must first purchase shares of the
bank priced at a nominal value of $10,000 per share. The paid-in
portion of a prospective member's purchased shares must be paid in
U.S. dollars, in four annual, equal, and consecutive payments. The
callable portion shall be payable on demand at any time to meet the
bank's obligations. Local media reports that the current
subscription fee of $25 million was reduced by 25 percent to
$6,250,000 for the GoB, with the first installment of $1,562,000 due
in 30 days. The remaining 75 percent - or $18.75 million - is
callable and represents the maximum funding the GoB can request from
CABEI.
4. CABEI was founded in 1960 by Guatemala, Honduras, El Salvador,
Nicaragua, and Costa Rica and claims to be the largest financial
institution in Central America. During its 46-year existence, the
bank has been involved with rural and small business development,
built relationships with other international financial institutions
(e.g., the World Bank, the Inter American Development Bank),and
worked to harmonize banking regulations in the region. In 1989, the
founding member countries amended CABEI's constitution to allow for
the participation of countries outside of Central America. Since
then, Mexico, China, Argentina, Colombia, and Spain have become
non-regional members.
HILL