Cooperation between Taiwan and CA

TEGUCIGALPA - Last week, Miss Carrie Hai-Yen Hsieh, a representative of the International Cooperation and Development Fund (ICDF) of the Republic of China (Taiwan) visited Honduras to review possible cooperation agreements between ICDF and the Central American Bank for Economic Integration (CABIE) concerning the Regional Credit Guarantee Program for Taiwanese Investors. ICDF initiated the program in 2001, with the purpose of creating new direct investment in Central America by facilitating loan guarantees to Taiwanese investors so they will invest and develop small and medium sized businesses in these countries.

ICDF proposes to improve the value of investment credit through insurance coverage for the investment by re-insurance and risk mechanisms offered by CABIE. CABIE will provide guarantees to Participating Financial Institutions (PFI's) for sub-loans to Taiwanese investors in Central American countries.

The program will benefit both the private and the public sector. Benefits for the CABIE will be attracting more Taiwanese investors, improving shared resources and the strengthening of cooperation relationships with Central America. The CABIE will also gain experience in the credit guarantee program in Central America, by means of support for the development of the private sector. The benefits to the PFI's will be extension of businesses to Taiwanese investors and insuring loans through the program. Program experiences will foment loans to other foreign investors. The benefits to the Taiwanese investors will be: the obtention of loans faster and easier in the local financial market, small and medium sized businesses will be motivated to form alliances with Taiwanese businesses, a competitive market environment will be integrated.

Once this program is completed, it will create job opportunities in Central American countries, improve market abilities, transfer technology and increase the efficiency of small and medium sized businesses.