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Press Release

Wednesday, July 21, 2004

OPIC Concludes New Bilateral Agreement with Honduras

TEGUCIGALPA, HONDURAS – The Overseas Private Investment Corporation (OPIC) today concluded a new bilateral investment incentive agreement between the governments of the United States and Honduras, paving the way for streamlined OPIC support for U.S. investment in the Central American nation.

The new agreement, which updates one signed in 1966, is a prerequisite for OPIC activity in a country. The updated version reflects a contemporary approach to foreign investment, by eliminating outdated procedures which can delay projects’ approval.

The bilateral agreement was signed by U.S. Ambassador to Honduras Larry Palmer and Honduran Minister of Foreign Affairs Leonidas Rosa Bautista.

OPIC President and CEO Dr. Peter Watson said the new agreement “heralded streamlined OPIC efforts to encourage U.S. investment in Honduras. In tandem with the Central American Free Trade Agreement (CAFTA), we can expect greater levels of American investment in the dynamic and growing market that is Central America.”

Dr. Watson noted that U.S. trade and investment with Central America verges on $20 billion per year, and is likely to increase three-fold as a result of CAFTA, as well as expansion of capital markets in the Caribbean Basin.

Over the last fiscal year, 40 percent of OPIC insurance projects and 65 percent of its small business deals came from Central America and the Caribbean. The region now represents seven percent of OPIC’s total combined portfolio and nine percent of the total Insurance portfolio.

During its 33-year history, OPIC has supported 53 projects in Honduras with more than $108 million in financing and political risk insurance, in sectors ranging from financial services and construction, to manufacturing and tourism.


OPIC is the U.S. Government’s development finance institution.  It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy.  Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad.  OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

 

Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported nearly $200 billion of investment in over 4,000 projects, generated $74 billion in U.S. exports and supported more than 275,000 American jobs.