On May 19, 2020, CABEI and the Ministry of Economy and Finance (MoEF) of the Republic of Korea signed an Agreement for the creation of the Korea-CABEI Partnership Single Donor Trust Fund (KTF).
The Korea-CABEI Partnership Single Donor Trust Fund (KTF) provides non reimbursable resources for the benefit of the CABEIS´s developing member countries in Central American region. These resources are utilized for the identification and preparation of projects that incorporate Korean content, technologies and solutions in various sectors.
The objective of the KTF is to harness the experience and development expertise of the Republic of Korea to promote the adoption and use of innovative technologies and solutions for Bank-executed activities in relevant sectors for the sustainability and development of the region.
On December 31, 2019, the "Protocol of Accession of the Republic of Korea to the Constitutive Agreement of the Central American Bank for Economic Integration" entered into full force and effect, once the Republic of Korea informed the Bank about compliance with the constitutional and legal requirements of the Republic of Korea to become an extra-regional partner.
On January 10, 2020, the Central American Bank for Economic Integration (CABEI), announced the official incorporation of the Republic of South Korea, as a new extra-regional partner, the incorporation materialized with the payment of the first installment of capital. The entry of the new partner ratified CABEI as the strategic ally of the Central American region, since it will attract and channel external resources. The Republic of Korea's capital subscription request amounted to US$450 million and has impacted positively and immediately the Bank's financial profile. Subsequently, in June 2020, the Republic of Korea increased its subscribed capital to US$630 million. Likewise, the incorporation of Korea has strengthened institutional governance, while improving the benefits of the cooperation schemes signed between CABEI and Korean institutions in favor of its member countries.
"The relationship with the Republic of Korea and the Asian continent is being further strengthened, since through this cooperation it will be possible to take advantage of the transfer of knowledge and technology to the Central American region through the formulation of initiatives in key sectors of our countries and it will be possible to intensely promote the practices that in terms of development and economic growth have led this Asian country to become the eleventh world economy." - Dr.Dante Mossi, Executive President of CABEI.
The KTF Team streamlines the CABEIS’s process for accessing KTF resources, ensures consistency of the projects with the Bank’s priorities, and facilitates Donor consultations.
The KTF Team leverages Korea´s development and expertise. As well as generates and transfers development knowledge to promote the adaptation of innovative solutions and support selected activities and programs executed by the Bank in the region.