a special advertising supplement to the new

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A SPECIAL ADVERTISING SUPPLEMENT TO THE NEW YORK TIMES MAGAZINE
CAFTA
HONDURAS & EL SALVADOR
U.S.-Central America
Free Trade Agreement
Comprehensive Agenda of Cooperation
n January 2002, President George W.
Bush announced his intention to pursue
a free trade pact with five countries in
Central America – Honduras, El Salvador,
Costa Rica, Guatemala, and Nicaragua.
Although two-way trade between the U.S.
and Central America is already worth nearly $25bn annually, it marked a fresh commitment to forge a stronger partnership.
There are also plans to integrate the
Dominican Republic into the agreement.
The Central American Free Trade
Agreement (CAFTA) is now a fundamental
part of the region’s broader efforts to promote economic integration as well as open
more trade routes with America. U.S. exports
to the CAFTA group totaled $11.5bn in 2002,
a 42% rise since 1996. Imports were worth
around $13bn. The region has also become
a popular location for U.S. investment,
I
HONDURAS
Industrial boom drives
economic growth / Page 3
EL SALVADOR
Desire and determination
to succeed / Page 6
Enactment of the Central American
Free Trade Agreement (CAFTA)
between the United States and five
Central American nations will benefit
both regions by encouraging multilateral
trade and forging new commitments
on labor rights; providing the
participating nations with a firm base
on which to build stronger economies.
especially export-led industries. The pact is
designed to move forward the goal of a Free
Trade Area of the Americas agreement
by 2005.
Many in the region see CAFTA as a catalyst for change. The process is expected
to accelerate the pace of political and economic reform in each of the member states.
During the past decade, Central American
countries have established democratic systems of government and begun implementing economic reforms to promote
privatization and competition, and to open
markets. Huge advances have been made
in Honduras and El Salvador in terms of policy reform and liberalization.
To take full advantage of the trade talks,
each country must invest in projects that
improve competitiveness by reducing the
logistical costs of doing business and facili-
tating trade. Transition programs for non-competitive sectors are equally important. The
region is raising its institutional capacity to
administer the complex group of trade and
investment obligations involved. Investment
in critical infrastructure is also a priority.
Massive changes have already taken
place. With an agreement planned for early 2004, the five member states have worked
hard to eliminate intra-regional trade barriers. There is now harmonization on more
than 90% of all tariffs. Not so long ago, the
idea would have been unimaginable.
CAFTA is seen as part of a longer term
development strategy. The ultimate goal is to
create productive employment, to raise
income levels and increase social wellbeing.
The majority of Central America’s people still
live in rural areas with high poverty levels. It
Continues on page 2
This supplement has been produced and sponsored by Summit Communications.
It did not involve the reporting or editing staff of The New York Times.
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Continued from page 1
Regional bank bolsters
trade and financial links
The Central American Bank for Economic
Integration (CABEI) is the largest financial
organization in Central America, with some
$3.4bn in assets. It has a leading role to play
in the future prosperity of the CAFTA region,
helping to bolster trade and financial links
between member states and the rest of the
world. The Honduras-based bank has an
agenda to back regional development initiatives through carefully targeted project
loans and assistance, both in the private and
public sectors. Resources are channeled
through a network of over 100 banking and
non-banking institutions throughout
Honduras, El Salvador, Guatemala,
Nicaragua, and Costa Rica.
Founded in 1960, CABEI focuses on
three core areas – poverty reduction,
regional integration and international competitiveness. Its portfolio includes several
FUNDING A SOCIAL
TRANSFORMATION
CABEI’s portfolio is extremely diverse
supporting a wide range of productive
areas and social initiatives. Its position is
distinctive from other multilateral lenders
in that the private sector makes up more
than a third of its overall loans book.
The bank’s portfolio includes loans to
several high-profile infrastructure developments spanning water, energy, transport, and telecommunications. The aim
is to equip the region’s ports, airports
and other facilities with the necessary
hardware to handle the anticipated
growth. It is also boosting national
industries such as clothing production in
Honduras and Costa Rica’s electronics
manufacturing. With backing from
CABEI, Honduras’ apparel industry
critical infrastructure projects.
Investment-grade credit ratLast year, it disbursed a record
ings from all three agencies,
$1.1bn to projects across the
Moody’s, Fitch and Standard &
region including the modernPoor’s, highlight the bank’s finanization of El Salvador’s roads
cial credibility. In June 2003, a
and Costa Rica’s mobile tele- HARRY
leading financial markets magaE. BRAUTIGAM
phone network.
zine recognized CABEI’s achieveCABEI’s President, Harry E. President of CABEI
ments with the Best Financial
Brautigam, believes it is essenBorrower of the Year Award in
tial that the countries of the Central Latin America. It followed the bank’s debut
American region adopt a long-term co- issue, a 10-year $200m bond, that proved
operative approach through initiatives like hugely popular with investors from the U.S.,
CAFTA. Indeed, in December 2002, it Latin America, and Europe.
approved $2.5m in support for the CAFTA
Mr. Brautigam now sees real momennegotiations with America. “CAFTA, as tum in the Central American region for intewell as other trade agreements, will allow gration into the world economy. CABEI is
our countries to access new markets, con- an example of what can be achieved
solidate their positions in old markets, har- through regional co-operation efforts.
ness new foreign investment, and introduce “Unity is essential in today’s complex and
new technologies and knowledge,” Mr. competitive world.”
Brautigam says.
Indeed, it is important to recognize just
CABEI’s regional presence, financial how far the region has come in recent
soundness, professionalism, transparent years. Dr. Marvin Taylor-Dormond, CABEI’s
policies, and diverse product mix, are help- Chief Economist, describes CAFTA as a
ing to restore investor confidence in the “catalyst for integration” with improveCentral American region. The bank’s inter- ments evident in countless different areas.
national profile is growing. In addition to One major progress area is in the harmoregional members, extra-regional partners nization of tariff structures. “I think we
include Mexico, the Republic of China have made tremendous progress now in
(Taiwan), Argentina, and Colombia. Spain and that respect.”
Korea have expressed their interest in joinThe advancement of CAFTA in re-defining
ing. Talks are also progressing with Belize, relations with the outside world is essential.
the Dominican Republic, and Panama to
Jaime Chávez Almendares, CABEI’s
become beneficiary non-founding members. Executive Vice President, believes the trade
agreement, and the foreign investment it
will bring, will raise the profile of the development bank further. “With our correspondent network of banks throughout the
region, CABEI will be seen in a much
stronger light by the international financial community.”
MULTILATERAL
FINANCING FOR CENTRAL AMERICA
IN THE LAST 5 YEARS
WB
(World
Bank)
18%
IDB
(InterAmerican
Development
Bank) 37%
CABEI
(Central
American
Bank for Economic
Integration) 45%
EQUITY TREND FY JUNE 2000-2003
(IN MILLIONS OF US DOLLARS)
1300
1200
1100
1000
900
2000
Equity 1029
2001 2002
1087
2003
1143 1209
ASSETS TREND
FY JUNE 2000-2003
(IN MILLIONS
OF US DOLLARS)
3500
3400
3300
3200
3100
3000
2900
BCIE
is essential that these people are given access
to the full range of opportunities.
The rejuvenation of regional integration
is one of the most significant side effects
of the agreement. Continuous dialogue
among member states across a broad spectrum of issues in addition to trade has led
to the realization that the region must stand
united in the face of globalization. CAFTA
is expected to make the entire region more
attractive to foreign investors, creating a
larger domestic market with greater access
to North America.
CABEI’s micro credit program provides
small loans to help individuals and local
firms develop new business
exports have soared to over $2.5bn.
CABEI has made it a point to
strengthen its Special Fund for Social
Transformation with the aim of improving the lives of ordinary people in Central
America. Priority sectors for social funding include health, education, housing,
small enterprise and sustainable rural
development.
One major social initiative is the Plan
Puebla Panama, a cross-border economic development program designed to
improve living conditions from the
southern states of Mexico down to
Panama’s border with Colombia. CABEI
has pledged $608m to the scheme.
Other important social programs
include a micro-credit program to provide
small loans, as low as $100, to individuals
and local industries to foster productive
activity, especially in rural, under-developed areas, and protect people from loan
sharks. Micro, small and medium enterprise loans already make up close to 10%
of CABEI’s total financing. There are other
initiatives to help more low-paid people
purchase their own home.
2000
Assets 3094
2001 2002
2003
3188
3446
3214
LOAN PORTFOLIO
BY COUNTRY AS OF
JUNE 30, 2003
Costa Rica
21%
Guatemala
21%
Nicaragua
18%
El Salvador
21%
Honduras
19%
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3/ Honduras
Honduras
n recent years, Honduras has
maquiladoras sector in the last
proven itself to be one of the
two years – shows how far the
most resourceful and stable
country has come. Investment
countries in Central America.
has brought employment, foreign
Steady economic growth, based
capital, and new skills. Honduran
on a thriving maquiladoras (texmanufacturers now produce
tiles) sector, and diversification
sophisticated hardware for
into non-traditional agriculture,
American car giants. The agriculIT, electronics and tourism, has
tural base has widened to include
placed it at the forefront of the RICARDO MADURO exotic vegetables, shrimps, and
CAFTA group.
other export crops. The tourism
President of
Much of the credit goes to Honduras
industry is also booming.
President Ricardo Maduro who
President Maduro believes
has worked tirelessly over the last two Honduras must maximize its competitive
years to improve social conditions and advantages, including its proximity to the
promote development. Long-term priori- U.S., to stay ahead of the pack. There are
ties include poverty alleviation, health, ongoing improvements to the nation’s
and education. Here, a number of quick transport infrastructure to facilitate trade.
wins have been realized, including rais- He believes Honduras remains one of the
ing nutrition rates among school children. region’s best-kept secrets. “We need to
Job creation is also critical. “We cannot let ourselves be known.”
afford to lose one single job,” he says.
The recent strength of the economy – evidenced by the turnaround in fortunes of the
I
MUNICIPALIDAD YEGUCIGALPA
Lower cost production
base will attract
American investors
Long-term priorities for Honduras include
improvements in health and education
onduras has a lot to gain from the CAFTA trade talks. The transformation of
its industrial and agricultural economy has placed it in an enviable position,
ready to capture a bigger slice of intra-regional trade, and develop its links with the United
States. High productivity levels, a skilled
workforce, and improving infrastructure suggest a rapidly advancing economy.
The government is understandably
willing to foster the growing links among the
H
CAFTA member states. President Ricardo
Maduro says past differences are being put
aside, with initiatives like the customs union
and the harmonization of tariffs creating a
strong sense of unity. He says the U.S. –
which receives 40% of Honduran exports
and makes up over two-thirds of all inward
investment – is taking notice. “The region
is coming together and moving in a uniform
way which is much more powerful.”
Norman Garcia, Minister of Industry and Closer links with U.S. firms will help
Commerce, is leading the country’s CAFTA promote greater transparency in Honduras
negotiations. He says the implementation of and act as another reassurance for investors
the trade agreement will pave the way for
greater foreign investment, as new firms is only now starting to be discovered.
seek access to the U.S. market. It will also
The Honduran American Chamber of
give American investors a lower cost pro- Commerce promotes bilateral business
duction base. “For the U.S. texthrough its 430 member comtile industry to survive it either
panies, which include several
comes to Central America or it
multinationals. Beatriz Valle,
will disappear, because in 2006,
General Manager of the Chamber
China is going to invade with its
of Commerce, agrees that U.S.
textile products.”
firms should pay close attention
Honduras occupies a privito Honduras. She thinks closer
leged geographical location,
links with the U.S. will help proamid a stunning natural landmote greater transparency in the
scape, and, with four internacountry, another reassurance for
tional airports, Miami is just a NORMAN GARCIA
investors. “We’re going to have
short flight away. It is an ideal Minister of Industry to play by the same rules.”
platform for manufacturers and Commerce
Among the local financial
seeking to trim costs without
community, the feedback is
compromising quality.
equally upbeat. Banco Uno is pioneering the
According to Jesús Juan Canahuati of regional outlook, offering an identical serthe Honduran Association of Maquiladoras, vice in all countries where it operates. René
CAFTA offers the chance to build on the Becerra, General Manager of Banco Uno,
positive developments that have already says free trade is only the start. The longtaken place in the country. He says the term aim must always be to build sustainopportunity has always been there but it able growth.
CHAMBER OF TOURISM
INDUSTRIAL BOOM POWERS STEADY GROWTH
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SPECIAL ADVERTISING SECTION
FOREIGN INVESTMENT WILL DRIVE DEVELOPMENT
Tourism, textile assembly operations, and forestry are just some of the sectors that have growth potential
egional integration will bring
new commercial markets and
significant development
expanding the non-traditional secopportunities. According to
tor, in areas like fisheries, poultry,
and pork. Institutions such
Minister of Finance, Arturo
as Zamorano University in
Alvarado Sanchez, the governTegucigalpa is taking a lead role
ment has limited capacity to
in the development of new agriinvest, putting the emphasis heavcultural products.
ily on foreign investment. This
Patricia Panting, Minister
will help push economic growth
of Natural Resources and
both in Honduras and across ARTURO
Environment, notes the huge bioCentral America. “It is important ALVARADO
diversity of Honduras, something
the government creates suitable SANCHEZ
conditions so that private invest- Minister of Finance which not only brings opportunity but also great responsibility.
ment can come,” he says.
Areas with strong development potential There is already an infrastructure in place to
include tourism, textiles, assembly opera- protect the country’s lush tropical environtions, and forestry. Norman Garcia, Minister ment, through organizations like La Fundacion
of Industry and Commerce, says there is a Vida, which works with NGOs on local prolong history of American investment, dat- jects. At the same time, Honduras is ideally
ing back over 100 years. He says the coun- placed to tap niche markets such as ecotry’s urban infrastructure development on the tourism, in which the emphasis is always on
Atlantic side is unique to the region. “You sustainable development. “Environmental eduwill not find another country with a city as cation is forever,” she says.
large and as important in commercial terms
as San Pedro Sula in Central America.”
Outside the city is the region’s only deepwater Atlantic port.
Agriculture is also a major priority.
Honduras is already the largest water melon and cantaloupe exporter to the U.S. and
one of the leading suppliers of cultivated Spanish colonial forts, Mayan ruins, wild
shrimp. The list also includes pineapples, car- rainforests and golden beaches; the natrots and more traditional crops such as ural beauty and history of Honduras are
bananas, and coffee. Total exports have risen almost without comparison. It offers more
massively in the last decade from $800m in forest area, Caribbean beaches, and indigenous cultures than any other Central
1992 to $3.2bn in 2002.
Mariano Jiménez Talavera, Minister of American country. It is also home to the
Agriculture, says Honduras needs to adopt a second largest reef formation in the world,
long-term strategy to attract fresh capital, good hunting ground for scuba divers.
The fast growing tourism industry is
technology and know-how from overseas.
“We can provide a clean environment, a big well organized. As a result of some hard
country with a lot of potential, and we have work, many species of rare plants and anitrained people.” It also means developing mals can still be found in their natural habi-
The Honduran Ministry of Tourism is
promoting the country through three key
initiatives; Caribbean Creation,
Archaeology, and Nature and Adventure
Commitment to high
value from a unique
vacation destination
CHAMBER OF TOURISM
R
tats. The government is understandably pass the level of service that a big hotel can
committed to low impact, high value provide. We offer something special – the
tourism to protect its prized assets. At the details, the warmth, and customer service.”
The hotel first opened in 1997 with 14
same time, it aims to attract new investrooms catering to visiting businessmen. It
ment to the sector.
has since expanded with a furThere are efforts to build on
ther nine rooms and now caters
the country’s core strengths
to all kinds of travelers includthrough three key initiatives.
ing foreign tourists and long‘Caribbean Creation’ offers a mix
stay guests. Many find it through
of beaches, reefs, and diving;
the Internet.
‘Archaeology’ draws visitors to
She describes it as Tegucigalpa’s
the Copan Ruins and the regions
best-kept secret. “We have earned
surrounding the Copan Valley,
our reputation on guests’ experiSepulturas and La Entrada; while
ences. Everyday we are thinking
‘Nature and Adventure’ is based
MARIA ALICIA DE
about how to improve our service
on the largest tropical forest in ALVAREZ
and to make a better hotel.”
the Americas after the Amazon. Hotel Portal del
International hotels are also
“Our logo is: one small coun- Angel
operating in this growing martry, three small worlds,” says
Thierry de Pierrefeu, Minister of Tourism. ket. Other important players include Grupo
He recognizes the importance of Central Real, the hotel division of Grupo Poma.
America as a multi-destination region to outsiders but is eager to flag the country’s
own unique attractions.
Honduras is nurturing its international
profile through a series of exciting projects.
“We needed something to put Honduras on
the world tourism map,” he says. “We are
developing the Bahia de Tela resort, a major
investment of $60m which involves the Private enterprise council
Italian and Spanish governments and the pricampaigns to cut bureaucracy
vate sector in Honduras.” When completmong the Honduran government’s
ed, it will have two thousand rooms, seven
leading priorities, shared by CAFfour and five star hotels, and golf courses.
TA, is support for the indigenous priWell known international hotel chains are
planning to invest their money on the site. vate sector. It is a policy that underpins
Certainly, the standard and quality of local broader efforts to promote social and ecohotels is on the rise. Maria Alicia de Alvarez, nomic growth throughout the region.
Norman Garcia, Minister of Industry and
owner of the Hotel Portal del Angel, a small
and stylish boutique property in Tegucigalpa, Commerce, believes the Central American
says there is now more emphasis on cus- trade pact will allow local companies access
tomer service – the only way of keeping up to new markets and open up possibilities
is taking care of the details. “We can sur- for partnering foreign enterprises, creating
A BETTER
CLIMATE FOR
BUSINESS
A
Boutique hotel, Portal del Angel: the best kept secret of Tegucigalpa
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5/ Honduras
BANKS LOOK TO INTEGRATION IN THE U.S. MARKET
Young and innovative financial institutions are setting high banking standards for the Central American region
he Honduran banking sector has been
experiencing a period of consolidation
and modernization with more to come.
The government has improved transparency, tightening legislation and strengthening
the regulatory prowess of the national bank.
Arturo Alvarado, Minister of Finance,
thinks the effects of CAFTA will be felt
throughout the banking sector with the opening of new markets and the advent of greater
competition. There are already links between
some local finance institutions and larger U.S.
players. “In the case of Honduras, we have
a very strong integration with the American
market,” he says.
Banco Credomatic is one of the more
innovative players in the market. Although
it is fairly young, obtaining a license in 1997,
A focus on small businesses is key to the
it is part of a much larger and longer estabdevelopment of the private sector
lished regional financial group. It was one
of the first in the region to implement an ATM
a better climate for business. “Not only will network, credit cards, direct debits and othit foster investment from our own investors, er electronic transfers. Alberto Galeano
but also from foreign companies,” he says. Burgos, President of Banco Credomatic,
says: “All of our ATM networks
The Honduran Council of
are connected to the VISA,
Private Enterprise, known locally
Master Card, American Express
as COHEP, is the representative
and Diner’s Club global netorganization for the private secworks. In this way our custor. Its 10,000 members come
tomers can take out cash using
from all parts of the economy,
their credit cards at ATMs all
from tourism to textiles, reprearound the world. These transsenting some 85% of the workactions represent a high volume
force. Jacobo Regalado, President
of business for Credomatic. We
of COHEP, says the council camALBERTO GALEANO
are expanding our services and
paigns for a better deal for the BURGOS
having success in doing so.” He
private sector, including slashing President of Banco
adds that the bank recently
red tape and improving the work- Credomatic
received an international
ing environment. A key part of
ISO9000 quality award for its
the development of the private
high standards. “We are cursector is the increasing focus on
rently developing a company culsmall businesses. He says the
ture focused on the quality of
CAFTA initiative adds momenthe services we offer both extertum. “Since we started with CAFnal and internal clients.” He feels
TA there has been a great deal of
regional integration is a positive
Central American integration in
thing for the financial sector, crethe private sector. We have been
ating a larger market and helpworking together – for the first
ing to raise standards. “This is
time we have many Central JAVIER ATALA
why, as a group, we see ourAmerican federations providing FARAJ
Vice President and
selves as a regional bank.”
different products.”
General Manager of
Others are making an impresThe Foundation for the Banco Ficohsa
sion further away. Banco
Investment & Development of
Exports (FIDE), an agency originally derived Ficohsa, another young bank founded in
from USAID that promotes inward invest- 1994, has aimed for the U.S. market. It has
ment from offices in the U.S. and Asia, also established three branches in Florida and one
supports private sector growth. Vilma Sierra in Georgia under the name Ficohsa Express.
de Fonseca, Executive President, says this There are ambitious plans for growth in New
includes fostering links between small firms York, Virginia, North Carolina, and California.
with larger, experienced export companies. Javier Atala Faraj, Vice President and General
Improving technology transfer and quality Manager, says the branches help customers
standards is also vital. “FIDE is very focused remit money back to their families in
on eliminating barriers,” she says.
Honduras. By the end of 2003, the total vol-
BANCO CREDOMATIC
FIDE
T
Banco Credomatic
received an ISO9000
quality award for its
high standards
ume of remittances to Honduras could exceed
$1bn. Banco Ficohsa has also made its mark
on the technology front with the first on-line
banking service in Honduras. There is plenty of appetite to assist foreign investors too.
“I think foreign companies will need the
bank’s services, such as loans and other
services, and we are prepared for this.”
Banco Ficensa is another important local
bank with a regional presence combining
local know-how with the very best banking
practices. Its customers include corporate
clients from the U.S., Europe, and across
Central America. Established in 1974 as a private institution, it is also nurturing its links
with the U.S. market. Correspondent banks
include Citibank and Bank of America. Roque
Rivera Ribas, Executive Vice President and
General Manager of Banco Ficensa, agrees
there will only be room for those institutions
operating at international standards. He also
sees a niche to support the 600,000
Hondurans living in the U.S., which regularly send home money. “We can take care of
those people.” On the regional side, he
believes CAFTA will create a more conducive
environment for finance business.
Improvements to the banking code are already
marked out clearly. “The banks can take more
risks with a more stable legal framework.”
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El Salvador
DESIRE AND DETERMINATION TO SUCCEED
l Salvador is the smallest country in but what has been done with the resources
Central America, but perhaps also the that we have available has been pretty good.”
most dynamic. The desire to recover
The cost of the civil war was large. From
from more than a decade of civil war dur- 1979 to 1990 losses from damage to infraing the 1980s (known in the country as the structure and means of production due to
“lost years”) has imbued El Salvador’s guerrilla sabotage and the effect of reduced
peace-time governments with impressive export earnings totalled $2.2 billion. More
determination and energy.
recently the country has had to recover from
“We put our house in order,” says Juan the effect of its natural disasters. El Salvador
J. Daboub, Minister of Finance. “We brought suffered from two earthquakes at the begindown inflation from 30% yearly to standard ning of 2001, when parts of the country
international levels – the average in the past damaged by Hurricane Mitch in 1998 were
14 years has been 2.5%. We cut the num- still under reconstruction. The cost of the
ber of taxes and import duties
damage was estimated at
from 130 to three: Value Added
between $1.5 and $2 billion.
Tax, Income Tax and import duty.
In spite of these setbacks the
Basically, we have a simple proeconomy has proved resilient,
business tax system.”
growing twice as much as the
“We are proud of what we
world average and 1.7 times
have done,” says Miguel E.
more than the Latin American
Lacayo, Minister of Economy. “It
average. This is partly due to a
is easy to forget where we have
commitment to free markets and
came from and how tough the sitcareful fiscal management. It is
uation was ten years ago. We JUAN J. DABOUB
also thanks to a program of diverlived more than a decade of very Minister of Finance sification, which has reduced the
bloody conflict and we have been
dependency of the country on
able to do something that very few coun- the coffee sector, that has historically been
tries in the world have been able to do, which the backbone of the economy.
is to achieve total peace.”
The international community rallied
“Today you come to our country and you strongly to help El Salvador recover from
have no idea how much we have recon- its natural disasters by providing a total
structed. We spent several years’ budgets. aid package of $1.3 billion, with more than
We know there is still a lot of work to be done $168 million from America.
PROESA
E
Private sector thrives
on exports drive and
access to new markets
The final round of Central American Free
Trade Agreement (CAFTA) talks this month
will also mark an important milestone for
El Salvador in its quest to fully integrate
into the global economy.
A CAFTA agreement also will mark a
political and diplomatic triumph for
El Salvador, which has been a leading country in the integration process. “This is probably because we are the smallest, because migration flow,” says María Eugenia
we have a high population and because we Brizuela de Avila, Minister of Foreign
are the best prepared,” says Carlos Affairs. “For us the U.S. is the most imporQuintanilla Schmidt, Vice President of tant market,” she adds. About 65% of the
El Salvador, who is also President of Proesa, country’s trade is with the United States.
the country’s investment promotion agency. It currently imports $159 million more than
“We believe El Salvador cannot survive it exports to its vast northern neighbor.
in this globalized world as a separate econHowever, the balance is beginning to
omy, we must integrate,” says the Vice change. El Salvador is pursuing a stratePresident. “El Salvador is ready for that. gy to increase exports, especially of manOur businessmen and industries know that ufactured and non-traditional products. The
this is a great opportunity for them to sell negotiation of trade agreements is part of
more products. That is why the private this strategy. Exports grew 4.5% in 2002,
sector in El Salvador is very
while imports grew just 3.3%.
determined, compared to the
“Where we can compete is in
private sectors of other Central
the very selective niche of agroAmerican countries.”
industrial products that thrive
El Salvador is a member of
in our climate, for instance, flowthe World Trade Organization and
ers,” says the Minister of
benefits from membership of the
Foreign Affairs.
successful Caribbean Basin
“CAFTA will allow us to extend
Initiative. It has also signed free
the restricted market access we
trade agreements with Mexico,
currently have in businesses like
CARLOS
Chile, the Dominican Republic QUINTANILLA
textiles, meat, sugar, dairy prodand Panama and increased SCHMIDT
ucts, and tuna,” says Salvador
exports to all these countries. In Vice President of
Urrutia Loucel, Minister of
addition, its participation in a El Salvador
Agriculture and Livestock. The
recently signed Political Dialogue
country also sells the U.S. ornaand Cooperation Agreement with the mental plants, corn flour, and red beans.
European Union will lead to a customs union
“Investors need to see this as a land of
by May 2004.
opportunity where they can reduce their
The country’s foreign ministry has been costs of production,” says Jose A. Quiros,
at the forefront of these initiatives, also Minister of Public Works, who promises
taking a lead in building the political con- that by the end of 2004 “El Salvador will
sensus within the country to support free have the best infrastructure in the region.”
trade. “CAFTA will definitely be seen as
One of the most ambitious projects is the
an enormous opportunity for job genera- construction of a dry canal between Puerto
tion, political stability, and for lessening La Unión on El Salvador’s Pacific Coast and
Puerto Córtez in Honduras on the Caribbean
Free trade initiatives and further
Sea. Designed to meet the needs of coninternational economic integration will
tainer transportation, the canal will create
lead the country to greater prosperity
an alternative to the Panama Canal.
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Página 7
SPECIAL ADVERTISING SECTION
7/ El Salvador
El Salvador is capitalizing on its
proximity and the efficiency of its
labor force as a source of imported
goods to America
CAFTA ACTS AS
CATALYST FOR
U.S. INTEREST
Promoting the country under the
slogan ’El Salvador Works’ has
stimulated foreign investment
he launch of CAFTA looks set to
provide a further stimulus to
El Salvador’s already dynamic economy. Government estimates show that
the agreement could boost annual growth
by 4 or 5%.
The Salvadorean economy is in good
shape to benefit from an expansion in free
trade thanks to the importance already given to direct foreign investment as a generator of economic growth. In 2002, the
T
Heritage Foundation rated
El Salvador as the Central
American country with the
highest level of economic freedom, and the second highest in
all Latin America and the
Caribbean.
Even so, says Vice President
Carlos Quintanilla Schmidt, “the
free trade agreement is not a
panacea. We must do a lot of
work as well.” Mr. Quintanilla
Schmidt is President of Proesa,
El Salvador ’s Investment
Promotion Agency. In the three
years that Proesa has been
working, it has brought 95 new
investors into the country.
The organization’s support has
also enabled many businesses
already in the country to increase their
production.
The free trade agreement “is also an
opportunity for businessmen in the U.S. to
have a factory here to produce with less
cost and to compete with Chinese products,” says the Vice President. “We have
been doing everything to attract their investment, based on the slogan ‘El Salvador
Works’,” he adds.
Everyone at the investment agency sees
the inauguration of CAFTA as a crucial
moment for the economic future of the country. “When CAFTA happens, many other
things are going to happen at the same
time. You are going to see U.S. companies
looking to distribute their products in the
region. You are going to see an increase in
trade of all sorts,” says Patricia Figueroa,
Proesa’s Executive Director.
“CAFTA is going to ensure that all the
work that has been done in El Salvador
since the beginning of the 1990s will be
consolidated, such as the democratic
progress, the macro-economic reforms,
the labor competitiveness and position of
Central America as the best place to invest,”
she says.
The government has met with considerable success in stimulating new export
industries through fiscal incentives for Free
Trade Zones. There are currently 16 zones
in the country. The free zone legislation
allows companies to benefit from incentives, not only when they manufacture but
also when they distribute their goods.
“Many U.S. companies are interested in this
prospect because El Salvador has one of
the best airports in
the region,” confirms
Mrs. Figueroa. “In
terms of manufacturing, just about
every sector is going
to benefit from
CAFTA. In terms of
tourism we are
already negotiating
with several groups MIGUEL E.
to increase tourism,” LACAYO
Minister of
she adds.
Economy
The U.S. is by far
El Salvador’s most important economic
partner. Its support for the privatization of
the electrical and telecommunications markets expanded opportunities for U.S. investment in the country. More than 250
American companies have established
either a permanent commercial presence
or work through representative offices.
“We have been very successful in opening up to the private sector in those areas
where the private sector can do a better
job than we can,” says Miguel E. Lacayo,
Minister of Economy . Other free market
policies enacted by the government include
the privatization of the banking system
and the public pensions system. Import
duties have been reduced and price controls eliminated. Measures such as the
stricter enforcement of intellectual property rights have also improved the investment climate.
With the private sector now firmly established the government ’s priority has
become the continued diversification of
the economy away from the production of
coffee and sugar. World prices for these
two commodities are currently the lowest
in history. The country has been able
to maintain some growth through exports,
but not to its traditional markets. In
1988 coffee exports
accounted for more
than half of export
earnings. In 2002
they were 3.5%. An
agro-industrial reconversion program
has been set up to
PATRICIA
manage the diversiFIGUEROA
fication out of coffee
Executive Director
production. It has
of Proesa
already productively re-converted 500,000 hectares of coffee preserve.
The most successful sector is the
maquila industry, which cuts and assembles clothes for export to America. The
Caribbean Basin Trade Partnership Act
allows goods from the apparel industry to
enter the U.S. duty-free under certain conditions. Growth in the maquila sector has
already generated 90,000 jobs or 2% of
the productive labor force.
Other growth areas include call centers,
distribution centers, energy production,
Continues on page 8
EL SALVADOR WORKS FOR YOUR INVESTMENT
El Salvador’s Investment Promotion Agency, PROESA, specializes in supporting and promoting
foreign investment and opportunities. A team of experts are standing by to provide you with
all the vital information, contacts, and services you need to initiate a successful start-up
in agroindustry, call centers, electronics, manufacturing, textiles and apparel, tourism, or
distribution centers.
PROESA
EL SALVADOR’S INVESTMENT PROMOTION AGENCY
Calle Circunvalación #248
Colonia San Benito, San Salvador, El Salvador
Tel: + (503) 210 2500, Fax: + (503) 210 2520
www.elsalvadorworks.com
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Página 8
El Salvador/ 8
SPECIAL ADVERTISING SECTION
GOVERNMENT FOCUS ON FISCAL
DISCIPLINE PAYS DIVIDENDS
tourism will also generate significant
growth in the future.
“Manufacturing is something that most
people find very attractive once they come
and set up shop here. The labor force is
very productive, very easy to train, very
stable. You have good infrastructure in
terms of what you need to set up a business,” says the Minister of Economy.
“You can set up a company with this
Ministry in two hours. You come here in
the morning and two hours later you
leave with your social security number,
your tax number, working permits, everything. It is a place where it is very easy
to do business,” he says.
Vice President Quintanilla Schmidt
agrees. “We must build here not the
American dream but the Salvadorean
dream. The only way is to create jobs
and opportunities.”
The traditional dependency on coffee
production has given way to new areas
of industrial growth such as manufacturing
We are a technical institution, committed to:
promoting stability and the development of our financial system
consolidating monetary integration
generating and disseminating economic data
Contributing to the economic stability of El Salvador
El Salvador offers advantages as an investment location:
Economic Stability
Financial Stability
US Dollar as Legal Tender
Strategically Located Close to the US Market
Trade Agreements with Chile, Dominican Republic, Mexico, and now CAFTA
Second MOST FREE ECONOMY in Latin America in 2002:
Economic Freedom of the World
Banco Central de Reserva
de El Salvador
www.bcr.gov.sv
comunicaciones@bcr.gob.sv
result is that the number of telephone lines
per head of population has increased nearly fivefold. Just 8% of the population is
without electricity compared to nearly half
at the beginning of the 1990s. The number
l Salvador has won itself a reputation of people with access to running water has
for impressive financial and political doubled to two-thirds of the population.
stability since the peace agreement
On the revenue side, the government
was signed with the guerrillas in 1992.
has taken steps to improve tax collection.
The country’s boldest move was to make In 1999 it started selling bonds on the
the U.S. dollar its official currency. In 2001 international finance markets to fund govthe government approved the Monetary ernment operations. El Salvador Bonds
Integration Act, which made the U.S. dol- have been some of the most successful
lar legal tender alongside the colón. in the whole emerging markets spectrum.
However, it has now replaced the old cur- By February 2003 it had sold $2.15 billion
rency, which is no longer printed and which in bonds.
is only used in isolated rural areas.
The biggest source of foreign income
“We have locked in the benefits of for the country is family remittances from
macro-economic stability by dollarizing our the 2.2 million Salvadoreans (20% of the
economy,” says Minister of Finance, Juan population) working in America. The valJ. Daboub. The policy allowed a reduction ue of remittances transferred through the
in interest rates from 21% to 7%.
banking system reached a record total of
With the monetary framework fixed, the $1.93 billion in 2002 – 13.6% of GDP.
government has concentrated on fiscal disOne of the most important institutions,
cipline. The 1992 peace accords committed underpinning El Salvador’s financial stait to expensive transition programs and social bility is the Banco Central de Reservas del
services. However, it has managed to main- Salvador, the central bank, which opertain a budget deficit
ates independently
of 2.4% of GDP. Total
from government.
debt for the nonSince the dollarizafinancial public section of the economy,
tor of less than 40%
the bank’s function
of GDP means that it
has been to regulate
has been able to
the banking sector.
improve its rating
“One of our basic
from hardship to
functions is to
investment grade.
strengthen the staThe total external
bility of the financial
debt at the beginning
system,” says the
of 2003 was $5.07 bilbank’s President, Luz
EL SALVADOR MADE THE U.S
lion. Net international
María de Portillo. A new
DOLLAR THE OFFICIAL
reserves totalled $1.6
banking law to strengthCURRENCY IN 2001 AND IS
billion.
en regulations was
NOW REAPING THE BENEFITS
Mr. Daboub is proud
passed in 2002. New
OF MACRO-ECONOMIC
of the discipline that
rules on capital requireSTABILITY
has allowed improvements, risk managements in public services to be financed ment, and exposure of credit outside
responsibly over the course of a single El Salvador have also been brought in to
decade. “From a corporate perspective, minimize contagious risk. The Central Bank
El Salvador is the most healthy economy manages the liquidity reserves of the comin Latin America after Chile,” he says. The mercial banks to ensure the stability of the
country is comfortably within the IMF finan- banking system. “This is one of its most
cial criteria for the region and it will remain important functions as the Central Bank
so thanks to policies of debt reduction, can no longer provide banks with loans,”
governmental efficiency, poverty alleviation, explains Ms. de Portillo.
education, and employment creation.
The bank has modernized its payment
“We cleaned up the financial sector, system and is also developing new finanopened it up and privatized it,” he says. “We cial instruments to improve liquidity of
also separated the Central Bank from the assets, such as the mortgage portfolios
rest of the government. We opened up the of the banks. An Investment Fund Law
telecommunications, electricity, and pen- will allow creation of mutual funds prosions industries to the private sector.” The viding more liquid and deeper markets.
The biggest source of foreign
income is from the 2.2 million
Salvadoreans working in the U.S.
E
PROESA
PROESA
Continued from page 7
processed food, manufacturing, and various agricultural products for which the
country is climatologically and logistically well located. The government hopes that
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Página 9
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Página 10
El Salvador/ 10
SPECIAL ADVERTISING SECTION
LEADING THE REGION
INTO GLOBAL COMMERCE
El Salvador is acquiring the favorable conditions to
become a regional distribution center
strategic hub in one of the most sta- try and prime facilitators
ble and sound economies in the of
foreign
trade,
Americas, El Salvador is set to exploit El Salvador’s ports and
its location as a regional distribution center airports are the cornerand become the flagship of Central America’s stones of infrastructure
commercial growth and integration into the development plans, and
global economy. By bringing up the country’s CEPA is set to meet the
ports, airports and railways up to interna- challenge of guaranteetionally competitive standards, CEPA, the ing efficiency and modAutonomous Executive Ports Commission, ernization levels that ensure the country
is firmly positioned as a key player in the coun- benefits fully from the increased commertry’s commercial and economic expansion. cial activity. The new La Unión Port project,
President Flores’ efforts to open the the foreseeable realization of an inter-oceanSalvadoran economy to the rest of the world ic channel connecting the Pacific and the
are pushing the country to take
Atlantic through Honduras, and
THE COUNTRY’S
advantageous positions in
the modernization and expanAIRPORTS AND
Central America’s imminent
sion of airport cargo facilities are
PORTS ARE THE
growth challenge. El Salvador
in the headlines of El Salvador’s
GATEWAYS TO
is now determined to head the
development agenda.
GROWTH AND
region’s development through WORLDWIDE TRADE
President of CEPA, Mr. Ruy
implementing progressive legCésar Miranda, highlights
islation and a free market philosophy, which El Salvador’s comparative and competitive
is showcased by its major role in CAFTA, advantage with the rest of the region regardthe region’s Free Trade Agreement with the ing transportation development. “We startU.S., Central America’s most important ven- ed developing the airport back in 1980, and
ture so far in the path of commercial open- have invested US$80 million from our own
ing, and the adoption of the U.S. dollar as resources in the last 8 years. At present, we
legal currency in 2001.
are the leading airport in the region; passenAs the main entrance gates to the coun- ger capacity of the terminal building has doubled to 2.5 million passengers a year, while
we are currently handling 1.8 million, so there
is space for growth.” The 15-year
master plan for the airport development, aiming to cater for the increase
in commercial activity generated by
CAFTA, also includes a US$2 million
investment in the modernization of the
cargo terminal, which handles many
of the activities related to the
Free Trade Zones neighboring the
airport. Mr. Miranda draws attention to the strategy of commercial
positioning of El Salvador’s airport
in relation to others. “A beneficial geographic position, with a surrounding land
that is available for development, and high
security are crucial for maintaining the regional leadership of our airport infrastructure.”
However, more important than the airports
for the realization of CEPA’s mission are the
ports, which are fundamental for boosting
El Salvador’s potential as a commercial center. Puerto Acajutla is the mainstay of the country’s import and export activities, which is
set to experience an unprecedented turn-
A
around in 4 or 5 years with the opening of a
CEPA manages the leading airport in
Central America and aims to met the
new port. “Today Acajutla is El Salvador’s
only commercial port, handling around 3
challenge of ensuring El Salvador benefits
million metric tons of cargo. Now we are
from increased global trade
ambitiously launching ourselves into a project for a master concession of the port and is one of the tools for economic development
surrounding area to private operators that is that CEPA aims to utilize in coordination with
sure to launch great business opportunities,” air and shipping transportation activities.
explains Mr. Miranda. “The concessionaire The reactivation of railroad cargo and paswill be required to invest US$18 million as a senger transport in the country’s western
minimum and to reduce the current tariffs in region will provide the backdrop for the more
about 25 percent, which will guarantee high ambitious port projects.
levels of efficiency and competitiveness in the
In addition to being a linchpin for El Salvador
port for the next 30 years.”
and the Central American region’s economy,
While Puerto Acajutla is presently pro- La Unión is a decisive step towards conjected to absorb the growing trade demands necting the Pacific and the Atlantic oceans
created through CAFTA, a technically through a dry channel, as highlighted by Mr.
advanced port infrastructure speMiranda. “The truth is that
cialized in container cargo, Puerto
Central America, during these
La Unión, is being built in the Gulf
past decades, has always conof Fonseca, on the borders with
sidered the possibility of creatHonduras and Nicaragua. “The
ing an alternative to the Panama
port is going to be a center of disCanal, but at last, for the first time,
tribution, mainly for the Central
there is a strong possibility of
American and Pacific side region,”
making the dream a reality.” The
says CEPA’s President. “La Unión
joining of Puerto La Unión to Puerto
is going to have the necessary
Córtez through a road network
technical and physical conditions RUY CÉSAR
built on Honduran territory opens
for big ships, improving trade and MIRANDA
the path to an inter-oceanic route
lowering the cost of ocean trans- President of CEPA
that would multiply the region’s
portation between our region and
investment
opportunities.
the rest of the world.”
“Honduras has proved to have the resources
As well as bringing great economic and and the interest to build the roads; they
social benefits -namely substantial employ- have already completed a good section and
ment opportunities, the upcoming project, there are around 100 kilometers left to build,”
a US$125 million investment, will provide a says Mr. Miranda. “In El Salvador, CEPA has
powerful magnet for growth. With a depth concentrated efforts on making the La Unión
of 46.5 feet, the port has a specialized con- Port project a success.”
tainer terminal for handling containers and
A modern and economically stable democthe most modern and efficient equipment. racy, El Salvador is striving to become a
The land surrounding the port provides an strong reference on the international scene
additional area for launching the area’s com- and is on the path to substantial improvemercial potential.
ments. Meanwhile, CEPA is working towards
Although commerce in the region will be putting the country on track to realizing its
connected to the new port through the high- huge potential and becoming the regional
way network, El Salvador’s railroad system logistical center.
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Página 11
CEPA...bringing you closer to Central America
Cancun
Puerto de Acajutla
The Autonomous Executive Ports Commission
(CEPA) is constantly and efficiently combining
technological and human resources with
modern infrastructure in its airports, ports and
railways to firmly position El Salvador on the
international trade map for the last 50 years.
With an outstanding reputation, CEPA is not
only creating an international multi-modal
transportation hub, but is also steadily motivating growth and driving progress.
El Salvador International Airport is only
30 min. away from the capital city of San
Salvador. The state-of-the-art international
airport provides a safe transportation mode
for business and leisure travelers. It is the largest airport in the region, equipped with an
advanced navigational security system and
with room for expansion within El Salvador's
favorable investment climate.
Acajutla port is a well equipped port with
sound infrastructure, now concessioned. By
mid 2007, a new deep water port, La Union
Port, will commence operations in its first
implementation phase with: three berths totaling 2250 ft, two new Panamax type gentry
cranes, and two powerful tugboats to assist
large container vessels. With an investment of
$125 million, it is expected to rapidly become
a regional hub with 38 hectares reserved for
port related industries. With its strategic geographical location - flanked by Nicaragua,
Honduras and El Salvador - La Union Port is
poised to become the gateway to other ports
in the Atlantic Ocean and strategic-logistic
cargo distribution center to and from the US
and Asia. With a stable and sound economy,
El Salvador invites you to join CEPA in its
phase of expansion and enjoy the benefits of
free trade.
Santo Tómas
Puerto Cortez
Manzanillo
Puerto Quetzal
Acajutla
Puerto Limón
Corinto
Costa Rica
Caldera
Area covered by
Puebla Panama Project
Ports with
Panamax cranes
Ports for smaller
draught ships
EXECUTIVE AUTONOMOUS PORT COMMISSION
Edificio Torre Roble, Boulevard Los Heroes San Salvador
Tel: (503) 260-5477 Fax: (503) 260-3314
For more information, please visit: www.cepa.gob.sv
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Página 12
El Salvador/ 12
SPECIAL ADVERTISING SECTION
PIONEERING COMPANY HAS INTERNATIONAL ASPIRATIONS
With its four main divisions Grupo Poma has interests in automotive distribution, manufacturing, construction and hotel management
hen Bartolomé Poma arrived in at four factories in El Salvador. Grupo
El Salvador in the early part of Roble is a construction subsidiary that
the 20th century, he laid the builds and manages shopping centers,
foundations of one of the country’s most housing, and office space. Finally Grupo
successful family businesses.
Real, of which Fernando Poma is General
More than 80 years later his great Manager, runs the group’s hotel interests.
grandson, 31-year-old Fernando Poma is
This diversification began in earnest
the energetic General Manager of Grupo during the 1970s, when the company
Real, one of Central America’s leading first ventured into real estate. “We purhotel companies. He looks back at his chased a large piece of land in what,
Spanish and Italian ancestors with pride. during that time, was ‘up-town’ San
“My great grandfather was one
Salvador, and constructed
of many adventurers seeking
what are now known as the
his fortune in America,” he
the Metrocentro Shopping
says. He was a pioneer in more
Mall, the largest shopping cenways than one. In 1919 he startter in Central America, the
ed up one of the first car disInterContinental Hotel, and the
tributors in El Salvador with big
Torre Roble office building,”
brands at the time like Hudson
explains Mr. Poma.
and Essex.
It was a successful model
“In the early days, there were
that the company has been
FERNANDO POMA
very few cars in El Salvador and
able to repeat in many of the
General Manager
even the main transit arteries of Grupo Real
main cities of the region. “In
were not yet paved,” says Mr.
most cases up until now we
Poma. The company became the
have been lucky with real
distributor for GM in the 1930s and acquired estate prices being on the rise. In certhe Toyota license for the country in 1950s. tain instances, by selling the land adjaIt was the second distributor for the firm in cent to the project we have been able to
the world after Taiwan. During the next recoup our initial equity investment,”
decade the Poma family business became says Mr. Poma.
distributors for Chevrolet, Kia, BMW,
Not everything has been easy. The
Mitsubishi, and Ford, while expanding into period of civil war in El Salvador was
other Central American countries.
traumatic for the family. “We were forced
Now the company has diversified far to relocate to the United States,” Mr.
beyond its origins. Grupo Poma is divided Poma recalls. However, even during this
into four main divisions. Grupo DIDEA is still difficult time the business continued to
one of the main automotive distribution com- diversify.
panies in the region.
The 1990s was the decade of regionGrupo Solaire, the industrial division, man- al expansion in Central America. Grupo
ufactures windows and aluminum products Poma constructed 14 shopping centers in
W
the region, eight five-star hotels and many
other mid-range hotels. “We started this
regional expansion with the philosophy
that we wanted to have the best hotels
and the best shopping centers in each
key Central American city. When we had
accomplished this strategy, we decided
to venture into mid-scale products in secondary locations,” says Mr. Poma.
The company also moved into housing
construction. It constructed more than
50,000 low-income homes and provided
financing vehicles for the purchase of
these homes. Its automobile division
secured a more than 50% market share
in El Salvador and leading positions in
many neighboring countries.
PHILOSOPHY OF EXCELLENCE FOR LEADING HOTEL CHAIN
A spacious and cool stone-flagged
reception, elegant open air swimming
pool, and fine city views combine to
make the five-star Real InterContinental
San Salvador one of the premier hotels
in El Salvador. It is conveniently located
in the heart of the capital city’s business and commercial district, only a
30-minute drive from the international
airport. Directly opposite is the largest
shopping mall in Central America and
close by is an array of restaurants and
tourist attractions.
For many visitors to El Salvador, the
Real InterContinental is the gateway to
one of Central America’s best kept
secrets. “There is a hidden beauty to
this country, especially with regards to
the mountains, volcanoes, lakes and
beaches. Because of the reputation of
the past, this has been a well kept
secret for Salvadoreans,” says
Fernando Poma, General Manager of
Grupo Real, now the prime hotel chain
in the Central American region.
The Real InterContinental was the
first hotel built by Grupo Real back in
1972. It is now the luxurious flagship in
a fleet of top hotels in Central America,
Mexico, and the United States. Mr.
Poma is proud that his company has
been influential throughout the region.
“El Salvador’s business people have
really managed to make a difference in
the region. The mentality is always forward looking, something prevalent in
countries where people have suffered a
lot throughout the years.”
His company’s mission is “to be the
best hotel chain in every market that
we are present in; to maintain a core
philosophy of excellence in customer
service; and make full use of our
unbeatable competitive advantages at
all times in order to provide our guests
with the highest perceived value.”
Grupo Real has conceived ambitious
development plans for the coming
years. The group will complete its first
Quality Hotel this year in the Dominican
Republic. This four-star hotel will be
constructed just five minutes away
from Las Americas International Airport
in Santo Domingo.
The 1990s was a decade of regional
expansion for Grupo Poma, constructing
some of the best hotels, and shopping
centers in each key Central American city
“We are now headed for the Caribbean,
starting with the Dominican Republic,”
says Mr. Poma. “This month we inaugurate the first airport hotel of Santo
Domingo. The second project will be a
JW Marriott hotel in the financial center
of town that will open in 2005.
“We already compete globally in all
our operating divisions. This is particularly
true in the hotel division where we compete face to face with Marriott, Radisson,
Melia, Westin, and many others.”
Even as it turns into a global company, Grupo Poma continues to nurture its
roots in the community where it was
founded. It funds several charities and
has itself founded two philanthropic organizations. One, the Fundacion Para La
Salud y el Desarollo Humano (FUSAL),
works in more than 60 rural communities
providing medical assistance. The other
is the Escuela Superior de Economia y
Negocios, a university set up in San
Salvador to train future business leaders.
For further information contact:
Summit Communications
1040 First Avenue, Suite 395
New York, NY 10022-2902
Tel (212) 286-0034. Fax (212) 286-8376
E-mail: info@summitreports.com
An online version is available at
www.summitreports.com/cafta
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Página 13
The Central American Bank
for
Economic
Integration
(CABEI), established in 1960,
pr omotes the integration
and balanced economic and
social progress of the area
by supporting productive
and competitive public and
private projects.
Within
the
context
of
CAFTA, FTAA, and other
current free trade agreements, CABEI is proud to
provide
direct
financing,
co-financing, intermediation,
technical
assistance,
and
policy advice to reinforce
high quality growth processes in the region, confirming
the bank’s leadership in the
promotion of Central America ‘s
sustainable development.
Boulevard Suyapa
P.O. Box 772
Tegucigalpa, Honduras
Tel: (504) 240-2227
Fax: (504) 240 -2226
www.cabei.org