BCIE - ANNUAL REPORT 2020 V-ENGLISH

2020

ANNUAL REPORT Office of the Dominican Republic

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“New opportunities are opening up for our country, and we want to pursue all of them.

Every effort must be made to finish projects that are already underway and to support new ones in areas such as education, healthcare, and security.”

-Luis Abinader

President of the Dominican Republic

60 YEARS

José Manuel (Jochi) Vicente

Minister of Finance Presiding Governor before CABEI in the representation of the Dominican Republic José Manuel (Jochi) Vicente, the country’s Minister of Finance, is a renowned economist, a graduate of the Pontificia Universidad Madre y Maestra (PUCMM) with honors and expert in the financial and management consulting industries.

Mr. Vicente holds a master’s degree in Business Administration (MBA) from the UCLA Anderson Graduate School of Management.

A skilled negotiator, Mr. Vicente has led a successful career in business planning, international business, corporate development, and mergers and acquisitions.

He has held executive positions in professional organizations such as the National Council of Private Enterprises (CONEP), the Santo Domingo Chamber of Commerce and Production, and the National Association of Young Entrepreneurs (ANJE).

Also, Mr. Vicente is a business school professor at PUCMM and teaches a Business Environment course at the Barna Business School MBA. The finance minister is also a partner at MacroAnalit, a firm specialized in corporate finance and economics.

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ANNUAL REPORT 2020

Hostos Rizik Lugo

Director of the Central American Bank for Economic Integration for the Dominican Republic Hostos Rizik Lugo is a business and finance professional with a Business Administration degree from the Universidad Iberoamericana (UNIBE).

He holds a master's degree in Strategic Governance and Political Communication from the George Washington University (GWU) in Washington DC and a degree in Strategic Innovation from the University of Oxford. He is currently pursuing a master's degree in finance with a concentration in banking management at the Pontificia Universidad Católica Madre y Maestra (PUCMM).

Mr. Rizik has done outstanding work serving people in communities in need around the country and collaborating with university students in professional development programs.

Skilled in project development, innovation, strategy, and negotiation, Mr. Rizik has maintained an active role in participating in different international forums regarding economic development, strategic planning, transparency, and public policy.

He was elected Director in the representation of the Dominican Republic, officially taking office on September 29, 2020, under a resolution adopted by CABEI’s non-founding members.

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Message from the Director For more than 60 years, the Central American Bank for Economic Integration has lent financial support to its member countries and led in the promotion of development projects that chart the way to further economic integration that positively impacts the well-being of the people it represents. With the highest credit rating in Latin America, CABEI distinguishes itself as one of the most relevant emissaries in the capital markets with permanent access to financing in competitive conditions.

In September 2020, I was honored to be named CABEI’s Country Director for the Dominican Republic. Assuming this role amid the worst social and economic crisis the world has ever seen is a significant commitment. We are committed to supporting the government by directing resources and financing for strategic projects that lead to the development and transformation of the Dominican economy and its society.

Faced with new challenges brought on by the pandemic, supporting micro, small, medium, and large businesses, which are the engine of the economy, is a critical factor in generating more jobs and recovering the economy. 2021 will be a reactivation year, a turning point that sets us on the path of economic growth. CABEI’s support to the Dominican Republic will lead to newer opportunities, more progress, and further economic and social development to benefit our citizens.

As a sign of confidence in the country’s political stability and economy, we inaugurated our country headquarters in December 2020 to play a more active role in promoting the region’s social-economic integration and facilitating cooperation between the region's countries and the Caribbean. This marks a historic milestone as the first office to be installed in the Dominican Republic that represents the Central American Integration System (SICA).

We are here to provide various private and public industries financing instruments for actions aimed at developing the country.

The Dominican Republic is undergoing profound changes. After six months of vigorous work, the government of President Luis Abinader has many

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achievements recognized for their integrity, hard work, transparency, and ethical governance that seeks to advance the efficacy of public administration.

This generates an attractive environment for investments, entrepreneurship, innovation, commerce, among others.

It should be noted that one of the leading international risk rating agencies, Fitch Ratings, published an updated rating for the Dominican Republic in February, highlighting President Luis Abinader’s successful efforts to combat the macroeconomic risks caused by the COVID-19 pandemic.

I can affirm that CABEI has a dedicated team of professionals who work hard every day with passion and commitment. Thanks to them and the ongoing work of its Executive President, Dr. Dante Mossi, at the close of the year 2020, the Bank achieved its highest growth in the sixty years since its foundation.

Since 2007, CABEI has allocated close to 780 million in projects in the Dominican Republic. We will continue to implement actions in the near and long term to strengthen the local and regional economies.

When did the DR join this entity? What does this organism do? How does it operate? How long has the Bank existed in the region? What projects has the Bank financed in the country? Answers to these questions and more can be found in this mid-year report of my leadership before this institution.

Hostos Rizik Director

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60 YEARS

YEARS

FURTHERING THE DEVELOPMENT OF THE REGION

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Executive President and CABEI’s Board at the inauguration of the bank, 1961

1960 – The General Treaty of Central American Economic Integration was signed whereby the CABEI was formed.

1962 – Costa Rica joins the General Treaty of Central American Economic Integration.

San Jose, Costa Rica, July 1963.

1961 - The inauguration of the CABEI and its operations, Tegucigalpa, May 31 and June 1, 1961.

1963 – Costa Rica joins the agreement establishing the Central American Bank for Economic Integration. San Jose, Costa Rica, July 1963.

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60 YEARS

1973 – CABEI issues its first private bonds for US$10 million.

1972-1976 – CABEI responds to relief efforts for natural disaster victims in Nicaragua, Honduras, and Guatemala.

1978-1979 – Financing for public works programs: Regional Highway and Telecommunications Networks, which costs $CA 700.2 million, which in practical terms translates to more than 3,200 km of roads.

The extraordinary efforts member countries made to face mounting energy crises resulted in CABEI’s financing of hydroelectric projects

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at a total cost of $CA197.6 million, which contributed to developing projects such as Chixoy and Aquacapa-Moyuta in Guatemala and at El Cajon in Honduras.

1978 – The Bank’s Governors Assembly authorized an increase in capital from US$60 million to US$200 million.

Board of Governors Meeting in Buenos Aires, Argentina, 1971

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Placing a symbolic rock for the Headquarters, 1981

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1982 – Protocol to the Agreement Establishing CABEI, Managua, October 14, 1982.

1989 - The preliminary draft of the protocol of reforms to the Constituent Agreement, which contains the necessary amendments for incorporating extra-regional members to the institution, is approved.

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60 YEARS

1992 – CABEI’s authorized capital is raised from US$600 million to US$2 billion.

1997 – CABEI emits its first green bonds in the Republic of China (Taiwan).

1992 - Reforms to CABEI's Articles of Agreement, approved in 1989, allowing the incorporation of extra-regional members, entered effect, allowing the addition of the Republic of China (Taiwan) and Mexico on July 14 and 29, 1992.

1997 – Colombia joins CABEI. 1998 – Changes are approved for the Articles of Agreement, which establish that this institution's Executive President must be chosen using an international competition based on technical criteria.

1995 - CABEI's first shadow rating is obtained at "B".

1995 – Argentina joins CABEI.

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Investors from the Republic of China (Taiwan)

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Amayo Wind Consortium’s 40WW Wind Generation Project, Nicaragua, 2007

2000 – CABEI obtains the first credit rating equivalent to an investment grade granted by the National Association of Insurance Commissioners.

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2005 - CABEI receives its first A rating from Moody’s rating agency.

2005 – Spain joins CABEI as Europe’s first extra-regional member.

2001 – Spain’s president announces his decision to join CABEI as an extra-regional member.

2006 – Belize joins CABEI.

2002 – CABEI obtains its first investment-grade rating of BBB from international rating agencies.

2006 - CABEI begins financing the Las Pailas Geothermal Project (Costa Rica) for US$160 million, with an installed capacity of 35 MW and an average annual generation of 272.9 GWh.

2004 - Financing for debt relief under the HIPC Initiative was completed for Honduras and Nicaragua.

2004 – The 2004 – 2009 Institutional Strategy is launched.

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60 YEARS

2007 – The Dominican Republic and Panama join CABEI. 2007 – CABEI obtains an A- credit rating from Fitch Ratings and Standard & Poor’s 2008 – The international financial crisis impacts the world economy; still, CABEI maintained its solid financial position and its financing in the region uninterruptedly.

2009 – The Bank’s authorized capital is raised from US$2 billion to US$5 billion.

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Monte Grande Dam Multiple Project Visit in Dominican Republic, 2019

2010 – CABEI's launches its institutional strategy 2010 - 2014: Competitiveness through Integration and Social Development and a development impact measurement framework is implemented using the Development Impact Index (I-CABEI).

2015 - CABEI launches its institutional strategy 2015 – 2019; Reforms to CABEI’s Articles of Agreement are approved, allowing equal treatment for all full SICA members, based on Sustainable Development and Competition.

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combat and offset the effects of climate change in the region's countries.

2016 - CABEI is accredited by the Green Climate Fund (GCF). Accreditation implies CABEI can carry out large projects and access all the current financial instruments of the Fund.

2016 - CABEI is accredited as a Permanent Observer of the United Nations Framework Convention on Climate Change (UNFCCC).

2015 – CABEI is accredited as a Regional Implementing Entity by the Climate Change Adaptation Fund. CABEI's accreditation will provide access to resources to execute programs and projects that contribute to

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60 YEARS

2017 – Board of Governors approves the entry of Cuba as an extra-regional member.

2017 – The credit rating agency Fitch upgraded CABEI’s business profile to A+.

Fonseca, an instrument used by the countries involved for the planning, negotiation, and coordination of this area's development.

2019 - CABEI issues a statement on the Zero Carbon and Access to Information initiatives.

2018 – Cuba joins CABEI. 2018 – The Republic of Korea officially solicits entry as an extra-regional member.

2018 – CABEI approves an increase in capital from US$5 billion to US$7 billion.

2019 – CABEI Presents a Master Plan for Investment Projects and Trinational Economic Development for the Gulf of

assets according to the CABEI Green Bond Framework. It supports vital sectors that will help Central America's transition to low carbon economies through sustainable land use, renewable energy, sustainable water management, and clean transportation.

2019 - CABEI approves US$550 million for fast passenger train in Costa Rica’s Greater Metropolitan Area.

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2019 - CABEI consolidates its position in the best risk category in Latin America after receiving an upgraded rating from Moody’s Investors Service from A1 to Aa3. Standard & Poor’s confirms the risk rating with a rating of AA. 2019 - CABEI issues its first global green bond, making resources available to its members to finance or refinance projects and eligible green

ANNUAL REPORT 2020

2020 – Korea formalizes entry to CABEI 2020 - In response to the global pandemic, CABEI launches Emergency Support and Preparedness Program for COVID-19 and regional economic reactivation. The program's objective is to prevent and contain the health emergency faced by the Bank's member countries and to implement shortand medium-term actions to strengthen the regional economy.

2020 - CABEI approves US$30 million for Bandex to support Dominican MSMEs affected by COVID-19.

2020 - CABEI will invest US$50 million for the Central American Development Infrastructure Fund (KorBCIE) 2020 – Opening of the representation office in the Dominican Republic.

2020 - CABEI approves US$2.5 billion for the Central American Resilient Reconstruction Program.

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ACTUALIDADES

President Luis Abinader inaugurates CABEI’s offices in Santo Domingo, Dominican Republic From left to right Hostos Rizik, CABEI’s Director for the Dominican Republic; Raquel Pena, Vice-President of the Republic; Luis Abinader, President of the Dominican Republic; Dante Mossi, CABEI’s Executive President; Jose Vicente, Minister of Finance; and Jaime Roberto Diaz, CABEI’s Executive Vice-President.

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"Since 2007, CABEI has financed close to 780 million dollars in projects in the Dominican Republic. We will continue to implement short and medium-term actions with the aim of strengthening the local and regional economy."

-Hostos Rizik

Director

60 YEARS

Summary of America’s Social Economic Landscape Three decades after the Second World War, specifically in the 1960s, the complicated evolution of Central America’s emerging economies—in an ever more marginalized America mired in deep uncertainty—lacked an instrument that would come to aid.

Routine practice required the region to seek the adequate means to mitigate the effects of a sui generis period in its nations' socio-economic evolution. Hence, a group of five countries from the central isthmus of the continent proposed an agreement whereby the main goal was to unify criteria that would ensure the possibility of reducing operational and financial burdens.

To symbolize the agreement, a date was agreed upon to commemorate the signing of the General Treaty of Central American Integration (TGIC) of 1960. This agreement established the creation of a financial institution (Chapter VII, Article 13) that provides the contracting States access to soft loans for the different investment needs arising in the posterity of the agreement.

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General Structure of the Treaty In its first objective, the TGIC states that its purpose is to unify the founding countries' economies (and those of its members) and thereby jointly promote Central America's development and improve the living conditions of its inhabitants. The matter would have early success if they established a financial intermediation mechanism that would grant them credit facilities that they could use to develop the social policies that motivated them to join.

ANNUAL REPORT 2020

The birth of a project that provides relief to emerging economies With the firm commitment of launching a project with such promising prospects politically, socially, and economically as this one, the signatory parties would alleviate the tensions caused by the imbalance of payments affecting their countries after a strong contraction of imports and exports the decade before its inception, paving the way for the desired expansion of their economies.

As such, the signatory States agreed to the following: “the creation of the Central American Bank for Economic Integration” inaugurated and commencing operations in Tegucigalpa on May 31 and June 1, 1961. The Bank’s members are “signatories” to the agreement highlighting the criteria of independence in its legal composition.

Likewise, it remains understood that this financial tool will act as an “instrument for financing and promoting integrated economic growth based on regional balance.” This postulates the economic premise of the absence of external influences and strictly monitoring the values of the variables resulting from this crucial interaction.

Once it all had been planned and structured in monolithic agreement by the partners, they elaborated the Articles of Agreement which gave life to the institution and activated its operations. It was also agreed that any other Central American State wanting to join the Bank could, leaving the door to economic integration open to any other country that decides to invest in or request capital from the institution.

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60 YEARS

The agreement that made us CABEI's partners Preamble to the Agreement Forty-three years after establishing the Central American Bank for Economic Integration (CABEI), the Articles of Association were drafted in 2004, identifying the Dominican Republic as a non-founding beneficiary by way of the Instrument of Adhesion in the Articles of Agreement. On November 19 of that same year, its incorporation into the institution was approved.

The contract is based on Article 4 of the TGIC that establishes CABEI, which regulates the inclusion of countries or public organizations with global reach and legal personality extra-regional membership in the institution under regulations established by the Board of Governors.

The contract also underscores that the Bank will exclusively finance economically sound and

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technically viable programs or projects and refrain from making loans or acquiring any responsibility for the payment or refinancing of any of the countries’ previous obligations.

Since 2007 when the Dominican Republic joined the institution, CABEI has established a partner relationship that has generated numerous benefits for the country since its inception. It has been a critical entity in the economic development of the nation.

Its contributions are clearly seen in infrastructure, agriculture, financing for production, social development, conservation, and protection of natural resources and the environment.

UPDATES

CABEI expands with new offices in the DR President Luis Abinader Corona inaugurated the representative office of the Central American Bank for Economic Integration.

With great enthusiasm, executives of the Central American Bank for Economic Integration (CABEI) announced its strategic expansion in the Caribbean during the inauguration of its representative office in the Dominican Republic, from where it will coordinate its operations.

The ceremony was attended by the president of the Dominican Republic, Luis Abinader; the vice president, Raquel Peña; the Minister of Finance, José Manuel Vicente, and CABEI’s Director in the Dominican Republic Hostos Rizik.

The Central American Bank for Economic Integration is a multilateral organization with headquarters in Tegucigalpa, founded in 1960 as a finance tool for the region's integration and development.

Its executive president, Dante Mossi, pointed out that “with this big step, CABEI ratifies its support for and interest in the development of the Dominican Republic, a member country since 2007. This measure reflects the Bank’s progress and aim of its business model and institutional strategy which supports the economic and social integration of its member countries.”

From the last floor of the 2015 Corporate Building, with sprawling views below of a city full of trafficjammed streets, it was announced that since 2007 CABEI has contributed to the well-being of the families of the Dominican Republic by approving

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ANNUAL REPORT 2020

financing totaling US$783.8 million for the public and private sectors.

Mossi pointed out that Dominican Republic is a strategic country for CABEI “because it is a gateway to Central America and the Caribbean. This country has a quota of close to US$ 1 billion that we leverage against other resources.”

He added, “Currently, the Dominican Republic owns a 5% stake in CABEI shares.”

“Our confidence is mutual, and our job goes hand in hand to achieve the common objectives we all seek, which is none other than to bolster our financial strength for the well-being of the Dominican Republic and the rest of the Central American region.”

Meanwhile, CABEI’s Director for the Dominican Republic, Hostos Rizik, pointed out that the institution’s objective is to work together with the government to contribute to the country's development.

After the keynote address, the head of State reaffirmed CABEI’s confidence in the country's future.

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Faced with new challenges brought on by the pandemic, we must support small, medium, and large businesses, knowing just how much these sectors drive the national economy, for they are essential to generating jobs and recovering the economy.

-Hostos Rizik

Director

INVERSION

More than

US$780 million approved

More than six million people have directly benefited from projects with approved financing from the multilateral.

The reliability of CABEI's participation in social and human development projects in the Dominican Republic is proof of the strength of a mutual relationship focused exclusively on reinforcing commercial ties to ease situations that put the public sector and private equity companies at financial risk.

To date, the Central American Bank for Economic Integration has contributed to enhancing the quality of life for families in the Dominican Republic. This has been possible thanks to approved financing in the order of US$783.8 million directed to the public and private sectors.

Through the execution of these initiatives, more than six million people have been positively impacted, offering hope for the country's future development. CABEI seeks to offer services of the highest quality to the end-users of projects financed by the bank.

Currently, the multilateral’s collaboration in the Dominican Republic includes financing of US$249.6 million for the construction of the Monte Grande Phase III Multipurpose Dam; approval of a global line of credit of US$100 million for Banco Popular and US$100 million for Banco de Reservas; the construction of

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a gas pipeline with a loan of US$54 million for AES Dominicana; in addition to its contributions against the COVID-19 Pandemic.

CABEI’s President, Dante Mossi, affirmed that “the realization of the Monte Grande Multipurpose Dam project includes the development of a population center that provides relocated families inhabitants with decent housing and a parcel of land big enough to produce agricultural products during the construction of the project.”

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The Monte Grande Multipurpose Project The Monte Grande Multipurpose Dam Project Phase III is located in the Barahona province near its border with the Azua province over the Yaque River south. As of December 2020, the dam's construction neared 50% completion, and the population center has a material completion of near 70%. As of August 31, US$180 million have been dispensed for the project that will be of great benefit to the southwest region of the Dominican Republic.

The construction will offer the Dominican people multiple benefits, including the generation of direct and indirect jobs, the control of flooding in the area, and the increase in potable water availability.

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The dam will also serve to supply water to the existing water treatment plant and distribution network of the Barahona-Bahoruco-Independencia Regional Aqueduct, which provides drinking water to fifty-one communities.

In the agricultural sector, the dam will make it possible to increase the water available for irrigation in and around the construction site. A total of 26,588.77 hectares have benefited from the irrigation canal. In later stages, the dam will promote the development of aquaculture and tourism activities.

26,588.77

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400

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INVERSION

Pandemic To counteract the pandemic, CABEI approved non-reimbursable financial cooperation of US$2.1 million to SICA member states, the Dominican Republic being one of the beneficiary countries.

As a result of this cooperation, CABEI provided the country with 26,000 early detection tests for the virus at the beginning of the pandemic, 21,504 ExiPrepTM96 Viral DNA / RNA extraction units, and an automated extraction unit to carry out disease detection tests.

Likewise, CABEI provided more support to MSMEs affected by the pandemic. President Mossi indicated that this institution is in talks with the Dominican Government to support the Central Bank’s efforts in shoring up small and medium-sized businesses negatively impacted by the COVID-19 economic crisis.

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UPDATES

CABEI defines the country as “its ambassador in the Caribbean” positive capital investment climate backed by the rule of law, the Dominican Republic is an attractive destination for businesses seeking to establish operations in the Caribbean and Central America. This is the reason why today, we are considered

CABEI ambassadors in the Caribbean.

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DESARROLLO

Projects financed As for projects financed in the Dominican Republic, CABEI financed four vital programs in the public and private sectors of great importance to Dominican families.

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Global Credit Line As for credit facilities in the Dominican Republic in 2020, we can highlight renewals in our Global Credit Lines of up to US$100 million both for Banco Popular and for Banco de Reservas. It s worth noting that in December of the same year, we approved a credit line of US$30 million to the Banco Nacional de las Exportaciones, or Bandex, to support the reactivation of productive sectors and companies involved in foreign trade through financial intermediaries.

In the case of Bandex, those resources benefited 857 incorporations which provide on average 40 jobs each. This translates to a social impact 34,000 people benefited. Moreover, this loan will preserve 79 permanent jobs, of which 39% are occupied by women.

The operation is stipulated in CABEI's 2020-2024 Institutional Strategy focused on Sustainable Competitiveness. Its strategic objective is to contribute to comprehensive economic growth and support policies that promote MSMEs in member countries.

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INVERSION

US$30 million approved to BANDEX to boost support for exporting MSMEs affected by COVID-19 These resources will benefit over 34,000 people, helping the government in its efforts to reactivate productive sectors and foreign trade in the Dominican Republic.

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INVERSION

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We are searching for new allies and development opportunities with international cooperation organizations that will give us access to capital to boost exports as the country needs to reactivate all its economic activities and sources of production."

-Juan Mustafá Michel

BANDEX General Manager

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INVERSION

Expansion of the economic reactivation program and support for MSMEs affected by the pandemic

As the vaccination plan progresses successfully in the Dominican Republic, we seek to boost MSMEs who have been hardest hit by the health crisis and are remaining afloat despite losing most of their capital to do so. Having an institution to rely on for financial help in the middle of a crisis helps ease the burden for many companies and the future of the country’s economy.

This program is intended to support structured operations in the eligible country’s finance industry that contributes to reactivating the region's economies by using different financial products such as loans, trade finance, and guarantees, among others.

The main focus will be supporting MSMEs to reestablish their productive capacities, restore and create

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jobs, promote trade finance operations, and inject capital in productive sectors financed by state or privately-owned banks.

In this regard, the Bank’s president, Dante Mossi, declared that this institution is in talks with the Dominican government to provide the support that will strengthen small and medium-sized businesses, providing them with the resources to overcome the economic crisis COVID-19 plunged them into.

Moreover, Dr. Mossi underscored that the Dominican Republic is a strategic partner for CABEI due to its location and willingness to collaborate. It is the “anchor,” serving as the entryway into Central America and the Caribbean. Work is underway for

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developing a maritime center between Central America and the country to advance trade and investments in the region.

As of this year, the United States remains the Dominican Republic’s leading trading partner. Europe is its second, and Central America its third, another reason why CABEI hopes—as declared by its president—to strengthen commercial ties in the region and position Central America as the country’s second trading partner.

"As a Central American bank, we aspire for Central America to become the Dominican Republic’s second trading market. We are excited about the opening of a CABEI branch in the Dominican Republic," added the president of CABEI. CABEI’s executive emphasized that the Bank works together with public-private associations to develop electromobility, guaranteed funds for MSMEs, and eventually support energy generation.

He argued the importance of the alliance and the participation between the Dominican Republic and CABEI, for it is Latin America’s highest-rated financial institution.

Dr. Mossi indicated that at present, the Dominican State owns a 5% stake in the bank, and for this reason, CABEI opened an office in the country through which it seeks to offer better services both to the private and public sectors.

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INVERSION

CABEI provides its member countries flexible financing for their acquisition of COVID-19 vaccines.

These readily available funds will support the country’s efforts to get priority access to the vaccine that fights against the novel coronavirus.

To help support its member countries’ efforts to overcome the health crisis caused by COVID-19, the Central American Bank for Economic Integration (CABEI) has allocated resources in the order of US$800 million for the acquisition and application of these medical products.

This amount is part of the COVID-19 Emergency Support and Preparedness Program and the Region’s Economic Reactivation program, in the scope of US$3,018.9 million.

The Program is at the service of the Bank's member countries, providing fast-disbursing financial resources to finance operations for the prevention, detection, and treatment of COVID-19. Our commitment to mitigating the economic impact of the crisis is steadfast.

Recently, the Government of the Dominican Republic— through its Minister of Finance—manifested

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its interest in using this means to purchase and administer the vaccine against COVID-19.

Speaking to the press, CABEI’s executive president, Dr. Dante Mossi, revealed the Bank's disposition to finance vaccine purchases, stating that: “We are the first bank in the region, and in the whole world, to issue a thematic bond for vaccines.”

CABEI will provide up to US$100 million to each of the institution’s eight beneficiary countries: Belize, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, and the Dominican Republic.

The Bank also reported its efforts during the year to create the "COVID-19 Emergency Support and Preparedness Program and the Economic Reactivation Program," with US$2.6 billion available in funding to mitigate the adverse social-economic effects of the pandemic.

ANNUAL REPORT 2020

 @RaquelPenaVice This initiative included donations to partner countries, both economically and medically, which amounted to US$13 million. We also made US$600 million available to finance public sector operations, as well as US$350 million to finance MSMEs through financial intermediaries allied to the Bank.

The Dominican Republic is grateful to @CABEI and its representatives in the Dominican Republic for joining the cause, leaving interests aside, to fight against COVID-19. United, we will get out of this as soon as possible! #VaccinateDR

🇩🇴

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A Message from CABEI’s Executive President For the Central American Bank for Economic Integration (CABEI), the expected context for 2020 was one of celebration. To commemorate 60 years of service to our member countries, we had planned a host of activities, but things turned out very differently. However, as the effects of COVID-19 evolved, that commemoration was transformed into a commitment to honor our 60 years with swift and effective actions.

We honored our anniversary by quickly channeling aid to combat the pandemic in the region. We knocked on the doors of our most recent partner, Korea, and purchased COVID-19 early detection kits for the entire region, responding quickly to the contingency. At the same time, we formulated and executed the COVID-19 Emergency Support and Preparedness Program and the Economic Reactivation Program in the order of US$3.018 billion. These programs cover several components: emergency aid, early support for the supply of medicines and medical equipment, credit to finance operations in the public sector, support Central Bank Liquidity Management and the financial sector, support for the Trifinio Project, and finally the credit facility for the acquisition and application of vaccines. Under this program, the Dominican Republic received US$ 1,530,728.

This and more was possible thanks to our financial strength, which even in times of crisis was recognized by the leading international credit rating agencies, recognizing the importance of CABEI as a provider of long-term resources for the region. Its solid financial position, preferred creditor status, and continuous support from its member countries have allowed us to maintain the best credit rating in all of Latin America.

This year we also managed to conclude our eighth capital increase, going from five to seven billion dollars, which constitutes a record in the history of the capitalization of development multilateral organizations. This manifests our shared sense of commitment, trust, and support for the institution by its member countries.

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It is worth mentioning that at the close of 2020, the Bank reached record-setting credit activities, reaching US$3.459 billion in approvals and US$2.538 billion in disbursements. Both figures represent the highest volume in the history of the Bank. [1] As for growth—despite the circumstances—we were able to open our representative offices in the Dominican Republic, a country we consider a bridge that unites Central America and the Caribbean. Why open a CABEI office there? We want to offer the personalized attention that characterizes us, and by doing so, continue to identify and channel resources to specific projects, enhance business opportunities, and boost the existing portfolio of US$306.4 million [2].

We are no strangers to this beautiful, opportunity-filled island; many projects such as the Eastern Corridor Highway, the Coral Highway, the Palomino Hydroelectric Project, the AES Pipeline, and the Monte Grande Multipurpose Project bear the CABEI seal. With financial intermediation through Banco Popular, BanReservas, and BANDEX for MSMEs, new and better projects will come through these, our new doors in the country.

I am very proud of what we accomplished in 2020, and I am very aware of the challenges we must overcome to face this “new reality.” Here we are, now closer to the Dominican people, growing, prepared to continue our work as the bridge that unites Central America and the Caribbean.

Dr. Dante Mossi Executive President

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0.87% of approvals and 2.25% of those disbursements correspond to the Dominican Republic.

2

End of year data

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CONTENT

10 - 60 years supporting the development of the region 4 - Profile: Jose Manuel Vicente 6 - Profile: Hostos Rizik 8 - Message from the Director 22 -

Brief summary of the social-economic panorama in America

23 - The birth of a project of hope for emerging economies

25 -

The Agreement that made us CABEI Members

30 - More than US$780 million approved 32 - Monte Grande Multipurpose Project 34 - Pandemic

27 - CABEI expands with new offices in the DR 36 - CABEI defines country as “our ambassador in the Caribbean” 38 - Projects financed 39 - Global Line of Credit

40 - US$30 million approved to boost exporting MSMEs affected by COVID-19 through BANDEX 44 -

Expansion of the Economic Reactivation Program and support to MSMEs affected by the pandemic

46 -

CABEI provides member countries with flexible financing for the acquisition of vaccines

48 - Message from the Executive President

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Annual report 2020

Hostos Rizik Coordinator

Genesis Suazo Assistant supervisor (English version)

Joan Leyba External Coordinator

Jesus Garcia Design and Layout

Joaquin Silfa External Coordinator (English versión)

Hornan Santana Adolfo Sesto Photography

Antonio Camilo Toca Supervisor Eduardo Navarro Assistant Supervisor

YEARS

@BCIE_org

@BCIE.org