Taiwan and the Central American Bank for Economic Integration (CABEI) signed the Agreement on the Establishment of the National Office of the Central American Bank in the Republic of China (Taiwan) on April 23 by means of a video message. Taiwan The Taiwan office is the first CABEI office in Asia. (Taiwan Ministry of Foreign Affairs)
BOCA signed an agreement with Taiwan on the establishment of a country office on the 23rd. Taiwan Ministry of Finance officials said that this move has “two firsts” significance. One is the first case of Central American Bank setting up a branch in Asia, and the first case of an international economic organization setting up a branch in Taiwan, which will help strengthen the relationship between Taiwan and Central American countries and enhance the visibility of Taiwan.
Dr. Dante Mossi, President of Central American Bank for Economic Integration (CABEI), and Taiwan’s Minister of Finance Su Chien-rong, met in Taipei and Honduras (translated from Taiwan) on the morning of the 23rd, Taiwan time. The “Agreement on the Establishment of CABEI Country Office in the Republic of China (Taiwan)” was signed by videoconference between Taiwan and CABEI in Taipei and Honduras (translated as “Honduras” in Taiwan).
The agreement between Taiwan and CABEI was signed by videoconference in the presence of Taiwan’s Foreign Minister Wu Chiu-sup (1st from left), Finance Minister Su Chien-rong (2nd from left), Central Bank President Yang Jin-lung (3rd from left), and CABEI President Dante Mossi (right). (Courtesy of Ministry of Finance)
The ROC government sees this as another diplomatic breakthrough. The Ministry of Finance pointed out that this is the first case of a Central American bank setting up a branch in Asia, which is conducive to revitalizing Taiwan’s financial market, strengthening the substantive relationship between Taiwan and CABEI, and enhancing Taiwan’s international visibility.
“The Republic of China” in the Bank of Central America to participate in the official name of the international organizations
Ruan Qinghua, Undersecretary of Finance, then held a press conference to announce that the agreement had created “two firsts”: “This is the first national office of CABEI outside the region, and the only international economic organization to set up a branch in Taiwan, the IMF (International Monetary Fund) we are also Not he member, nothing, but in CABEI, we are not only a member country, but also an international organization that participates under the official name of the country.”
Taiwan and the Central American Bank (CABEI) videotape the signing of the agreement, with Taiwan’s Foreign Minister Wu Chiu-sup (1st from left), Finance Minister Su Chien-rong (2nd from left), and Central Bank President Yang Jin-lung (3rd from left). (Courtesy of the Ministry of Finance)
Taiwan is also the largest capital market for Central American banks to issue debt in Asia. The Ministry of Finance said that the Central American Bank was established in 1960, with its headquarters in the Honduran capital city of Tegucigalpa, to promote economic integration and social development in the Central American region. There are 15 member countries, and the Republic of China became an extra-regional member in 1992, and is now the largest shareholder of the extra-regional member countries. The Board of Governors is the highest authority of the Central American Bank.
Taiwan looks forward to consolidating political ties among Central American countries
Qing-Hua Ruan mentioned that BOCA has set up national offices in Central America all with debt relationships, but Taiwan did not borrow from him. They also hope to expand and lobby countries in the Asian region to participate in this international organization through Taiwan. “Through such a mechanism, we can assist in the political and social development of Central American countries, in addition to strengthening relations with CABEI, but also with local diplomatic or non-confederation countries, to establish a closer and substantial relationship.”
Taiwan’s Finance Minister Su Chien-rong demonstrates the agreement signed with CABEI by video message. (Courtesy of the Ministry of Finance)
The Central Bank of Taiwan also issued a press release stating that BOCA has established seven country offices in Central American member countries with the function of managing and promoting the bank’s financial services to assist in regional economic and social development. The first cross-regional country office was established in Taiwan, mainly focusing on the advantages of our stable financial system and developed capital markets, thereby strengthening the Bank’s ties with the Asia-Pacific region and attracting investment.
U.S. Embassy staff and Korean Ambassador witness the signing ceremony
Taiwan’s Foreign Minister Wu Chiu-sup and Central Bank President Yang Jin-long attended the video signing ceremony. Nguyen mentioned that several directors personally observed the ceremony, the U.S. Embassy was represented, and the Korean ambassador to the region also participated in the ceremony in person.
Taiwan Foreign Minister Wu Chiu-sup. (Courtesy of the Ministry of Finance)
DPP legislator Kuo Kuo-Wen pointed out in an interview with Radio Free Asia that Taiwan was elevated from being a member of the Board of Directors of the Bank of Central America to being the Managing Director, and now the Bank of Central America will have a physical office in Taiwan, which is a breakthrough that not only enhances Taiwan’s international status, but also shows that Taiwan’s past performance is recognized by other member countries.
A prelude to Taiwan’s participation in the U.S. version of “One Belt, One Road”?
To counter China’s “One Belt, One Road”, former U.S. Secretary of the Navy Jim Webb has been working on a project to promote Taiwan’s participation in the U.S. “One Belt, One Road”. The Biden administration should launch a U.S. version of the Belt and Road Initiative (BRI), and Japanese media are reporting that the U.S. and Japan are planning to launch an Indo-Pacific version of the BRI.
Guo Guowen said, “So far, China’s ‘Belt and Road’ has not been particularly outstanding, and even some of it has been challenged by many local countries, while the U.S. cooperation with Taiwan has just started not long ago, but is worth looking forward to.”
In 2018, the Chinese Communist Party poached three of Taiwan’s friends in Central and South America, which is considered the “backyard of the United States,” and the United States recalled the ambassadors of the three countries in response. Guo said the Chinese Communist Party has been criticized for failing to deliver on its promises and its international credibility has been challenged.
The agreement between Taiwan and the Central American Bank (CABEI) was signed on video, with Taiwan’s Foreign Minister Wu Chiu-sup (1st from left), Finance Minister Su Chien-rong (2nd from left) and Central Bank President Yang Jin-lung (3rd from left). (Courtesy of the Ministry of Finance)
Kuo said, “Basically the international atmosphere for the CCP is now not a ‘fear’ atmosphere, but a ‘resistance’ atmosphere. Many of the CCP’s foreign policies are (full of) hegemonic overtones, and many countries are now not only maintaining their rejection of the CCP, but will produce actions of resistance.”
Blue Committee: collect business information to refer investment cases
KMT legislator Tseng Ming-tsung said in an interview with Radio Free Asia that Taiwan is a major shareholder in the Central American Development Bank and is now also the managing director, and now further wants to set up an office, highlighting that the Republic of China will play a more important role in the Central American Bank.
Tseng Ming-tsung said, “Taiwan and Central America distance elected, set up an office to help collect business information, referral of investment opportunities, especially the Republic of China in the local did not set up branches, Central American banks in Taiwan to set up a country office, help with Taiwan’s financial institutions business contacts, deepen the relationship with Taiwan’s capital market substantial cooperation.”
Tseng Ming-tsung believes that the Republic of China is willing to assist the Central American Development Bank, the past has also repeatedly increased funding to provide more assistance to local countries, in order to consolidate diplomatic relations in Central America.
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