Export-Import Bank Signs $200 Million On-Lending Finance Agreement with Latin American Development Bank

Untact Signing Connecting 16,300km from Seoul to Lima (Peru)
Bank President Bang Moon-kyu: "Establishing a Financial Bridgehead to Expand Entry into Latin America Will Enhance Export Competitiveness"

Visiting Kyu Bang, President of K-Sure, and Luis Carranza, President of CAF, are taking a commemorative photo after signing the export finance contract on the 27th in an untact manner at K-Sure headquarters in Yeouido, Seoul, and in Lima, Peru (the president's location), respectively.

[Asia Economy Reporter Kangwook Cho] The Export-Import Bank of Korea (KEXIM) announced on the 27th that it has signed a $200 million on-lending credit limit agreement with the Development Bank of Latin America (CAF) to support the financial needs of Korean companies amid increasing trade between Korea and Latin America.

CAF, established in 1970 for sustainable development and regional integration in the Andes region, is the largest development bank in Latin America, with 19 member countries including Peru, Colombia, and Brazil.

KEXIM President Bang Moon-kyu and CAF President Luis Carranza signed the on-lending credit agreement remotely from KEXIM’s headquarters in Yeouido, Seoul, and CAF’s headquarters in Lima, Peru, respectively.

On-lending finance refers to a financial product where KEXIM lends funds to local overseas banks, which then provide import payment loans to local companies importing Korean goods. Through this, KEXIM can utilize local overseas banks as operational branches to promote exports and local business activities of Korean companies.

At the signing ceremony, President Bang said, "Latin America is a market with very high growth potential, boasting a population of over 600 million, abundant mineral resources, and a young demographic. As KEXIM has expanded its financial foothold for advancing into Latin America, we expect the export competitiveness of our companies to improve in sectors such as infrastructure, automobiles, and healthcare."

CAF President Luis Carranza stated, "We will strive to improve infrastructure in the Latin American region and enhance the national competitiveness of member countries by fully utilizing KEXIM’s on-lending finance."

Last year, Korea’s exports to Latin America amounted to $26.3 billion, and overseas investment reached $10.2 billion, showing a trend of increasing trade and investment volume.

A KEXIM official said, "By signing the on-lending finance agreement with CAF, which has a total of 19 member countries, we will be able to meet the growing demand of our companies to expand throughout Latin America."

This content was produced with the assistance of AI translation services.