The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-hoon, “Korea Eximbank") announced on April 11 that the Bank will provide a USD 33 million EDCF* loan to fund the ‘Renewable Energy Development Project in Rural Areas’ in Nicaragua, which the government of Nicaragua has been pushing forward.

* The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges with the developing world and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit. Korea Eximbank currently manages the fund as its trustee. A total of KRW 13,828 billion in EDCF loans (commitment basis) has been provided to 353 projects in 53 countries as of the end of February 2016.

Korea Eximbank Chairman Lee Duk-hoon met with Nicaraguan Finance Minister Ivan Acosta Montalvan and signed the loan agreement in Nassau, Bahamas, where the IDB Annual Meeting was being held.

* IDB(Inter-American Development Bank)

Deputy Prime Minister and Minister of Strategy and Finance Yoo Il Ho also attended the signing ceremony.

The ‘Renewable Energy Development Project in Rural Areas’ is aimed at installing solar photovoltaic power systems in three states in the east of Nicaragua (RACCN, RACCS, and Rio San Juan).

Upon the completion, the project is expected to resolve the regional imbalance in electricity distribution in Nicaragua.

At the signing ceremony, the Bank's Chairman Lee remarked, "Sooner or later, we will collaborate with Nicaragua for a program mission as the first Latin American country, then we will finalize our medium-to long-term project plans by country which would contribute greatly to economic development."

Korea Eximbank has funded USD 270 million (10 commitments) in EDCF loans to Nicaragua so far.

It is the largest scale in amount as well as the number of commitments that EDCF has extended to any Latin American countries to date.

Prior to the signing ceremony, Chairman Lee met with representatives of Central American Bank for Economic Integration (CABEI) and Inter-American Development Bank (IDB) one after another in Nassau, where the IDB Annual Meeting was being held.

Chairman Lee met with CABEI President Nick Rischbieth and discussed the potential of economic development cooperation in Central America as well as the necessity of cooperation between the two institutions.

During the discussion, the two heads of Korea Eximbank and CABEI agreed to start the negotiation for co-financing within the first half of 2016.

On the same day, Chairman Lee also had a meeting with IDB President Luis Alberto Moreno.

In the meeting, they reached a consensus to strengthen cooperation between Korea Eximbank and IIC, a sister agency of IDB, in the private sector.