IDB supports early child development, nutrition, and violence prevention in El Salvador

A $35 million loan will help finance the country’s Urban Communities Solidarity Program

Tuesday, September 14, 2010


The Inter-American Development Bank has approved a $35 million loan to El Salvador for the Urban Communities Solidarity Program (UCS) to increase investments in human capital of low-income and socially excluded families.

UCS is a comprehensive poverty reduction program that supports the Salvadoran government’s strategic plan for implementing its 2010-2014 social policy. The plan includes improvements in nutrition, health, and education services, development of urban neighborhoods, creation of job opportunities, and support for community initiatives to prevent violence.

Recent data indicates that the economic crisis has resulted in increased poverty in El Salvador. The impact has been greatest in urban areas, where the poverty rate in 2008 rose from 29.8 to 35.7 percent.

The IDB loan resources will be used by 25 Salvadoran municipalities to improve nutrition for their citizens. Institutional strengthening for schools will increase educational quality and coverage. In addition, support will be provided for implementing a national early child development model in the poorest urban neighborhoods, and investments will be carried out to improve citizen security.

It is expected that the program will reduce incidence of anemia from 29.4 percent to 20.6 percent. The rate of anemia for pregnant women is expected to fall from 17.2 percent to 12 percent.

In the education sector, the program aims to increase school enrollment by 10 percentage points for children from four to seven years of age and train 80 percent of the teaching staff.

In the area of violence reduction, the program will finance the implementation of “centers for peaceful coexistence” in schools in low-income neighborhoods where students will learn techniques for preventing violence. Creation of the centers is expected to reduce school dropout rates caused by lack of security.

The IDB`s loan is for 25-year term, with a 4-year grace period, at a variable interest rate based on LIBOR.

More on this topic

IDB Finances Program for Poor Children in Nicaragua

December 2009

Loans totaling $15 Million will support startup of program to deliver services to urban children below age six

The Inter-American Development Bank has granted Nicaragua two loans of $7.5 million each to finance a social welfare program for children under six years of age who live in extreme poverty in the nation’s cities.

Nicaragua: $30 million to Combat Coffee Rust

June 2015

The coffee trader Ecom will be managing the funds provided by Starbucks, IFC and the IDB for long-term financing to help Nicaraguan coffee growers fight against rust.

From a statement issued by the International Finance Corporation (IFC):

The Inter-American Development Bank (IDB) will provide long-term loans to help Nicaraguan coffee farmers combat the devastating effects of the coffee rust fungus, which has swept through Central America, crippling production and threatening the livelihoods of millions who depend on the coffee industry.

Honduras to improve basic education with IDB support

April 2011

Honduras will improve basic education for more than 100,000 students with the help of a $37 million loan from the IDB.

The financing will help students to learn more in basic education schools that serve the country’s poorest population.

The program’s goal of improving educational quality is designed to complement the “Bono 10Mil” program, which provides conditional cash transfers to low-income families that keep their children in school.

El Salvador to improve rural roads with IDB assistance

September 2010

$35 million will finance rural roads, supervision and institutional strengthening

El Salvador will improve rural roads in areas with high productive potential with a $35 million loan approved by the Inter-American Development Bank (IDB).

The IDB loan will finance the rehabilitation and/or improvement of some 80 km of rural roads within a new approach to rural roads management which enhances the investment planning and programming process, optimizing cost and project impact.

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