CABEI, CAF, and CDB sign Exposure Exchange Agreements

The Central American Bank for Economic Integration (CABEI), CAF – Development Bank of Latin America and the Caribbean, and the Caribbean Development Bank (CDB) have signed Exposure Exchange Agreements (EEAs) totaling 1.15 billion dollars, which will help strengthen their capital positions, improve financial resilience, and advance sustainable development in the Latin American and Caribbean region.

These are the first operations of their kind between Multilateral Development Banks (MDBs) rated below AAA and regional MDBs. EEAs allow MDBs to diversify risk through the synthetic exchange of part of their sovereign credit exposures, providing an effective mechanism to reduce portfolio concentration, strengthen capital ratios, and create additional credit headroom for member countries.