New Bank President Limits Loans to Nicaragua, El Salvador
Gisela Sánchez, CABEI’s new president, plans to revise lending policies, halting loans to Nicaragua and El Salvador.
Historically, Nicaragua and El Salvador, led by criticized governments, received significant funding, raising concerns about CABEI’s direction under Dante Mossi.
Sánchez’s initiative aims to balance the portfolio, moving away from Mossi’s controversial policies.
She emphasized a need for fair support to all member countries, stressing strict enforcement of lending limits.
Her ascendancy comes after Mossi’s departure, prompted by criticisms of his management, including a 30% increase in administrative costs and a dramatic profit decline.
Critics notably dubbed Mossi “The Dictator’s Banker” for supporting regimes accused of undermining democracy and human rights.
The bank’s loan distribution under Mossi was notably unbalanced, with Nicaragua and El Salvador receiving a disproportionate share of funds.
Sánchez seeks to correct this, ensuring loans align with the bank’s principles and member countries’ needs while improving efficiency and transparency.
However, Sánchez’s efforts have garnered support from CABEI‘s international partners, indicating a broad consensus on the need for reform.
The Green Climate Fund revoked a $116 million agreement with Nicaragua for ethical non-compliance.
In short, this emphasized the importance of Sánchez’s reforms in restoring CABEI’s integrity and trust among the international community.
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