A Central American development bank said on June 3 it had approved an $800 million credit to shelter local countries from spiking global fuel prices, partially caused by Russia’s invasion of Ukraine.
Central American nations have seen costs jump for fertilizer and staple regional foods like corn and beans, as a result of rising fuel prices.
"This operation will have a direct economic impact for millions of consumers," the president of the Central American Bank for Economic Integration (CABEI), Dante Mossi, said in a statement.
"The subsidies mitigate the impact from the increase in the cost of fuel on consumer products, basic services, transportation and supplies, among others," Mossi added.
The CABEI indicated that each of the group’s eight regional members, both founding and non-founding countries, may receive up to $200 million in financing.
The bank, created 61 years ago to finance the development of Central American nations, also may expand the credit line based on external funding, the statement said.
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