To Increase Korea's Exports to Central and South America
The Export-Import Bank of Korea announced on Oct. 27 that it has signed a US$200 million interbank credit facility agreement with the Development Bank of Latin America (CAF) to financially facilitate Korean companies’ exports to Central and South America.
CAF stands for Corporacion Andina de Fomento. Its English name is the Development Bank of Latin America. It is Latin America's largest development bank established in 1970 for sustainable growth and regional integration in the Andes region. It has 19 member countries, including Peru, Colombia and Brazil.
An interbank credit facility is a financial instrument in which the Export-Import Bank of Korea provides a credit line to a local bank overseas, which in turn provides loans to local companies that import goods and services from Korea. Korea Eximbank can use overseas local banks as its operating branches to rev up Korean companies' exports and local business activities.
In 2019, Korea's exports to Central and South America amounted to US$26.3 billion while Korea’s investment in the region stood at US$10.2 billion. Korea’s trade with and investment in Central and South America has been on the uptick recently.