The IADB will grant the Salvadoran government a loan for $45 million, which will be used to finance the project called "Strengthening the Climate Resilience of Coffee Forests."
According to the Government, the subscription of the loan with the Inter-American Development Bank (IDB) has the objective of maintaining the ecosystemic services provided by the coffee forest and improving the food security of small producers, informed the Ministry of Finance of El Salvador.
The Central American Bank for Economic Integration approved a credit line for the Salvadoran government to reconstruct, remodel and technologically equip 186 schools nationwide.
The schools that will be remodeled are located in the departments with high Multidimensional Poverty Index, at the preschool, primary, secondary and high school levels, highlights a statement from the Central American Bank for Economic Integration (CABEI).
The Inter-American Development Bank approved two lines of credit for El Salvador, whose funds will be used for programs to improve the quality and coverage of education, and to promote productive activity through business and housing loans.
The first line of credit, amounting to $300 million, will support the expansion and improvement of the quality of education in the country, with a special focus on early childhood and vulnerable populations, sustainability, and the economic recovery of SMEs affected by the Covid-19.
CABEI approved a line of credit for the Salvadoran government to finance health care programs focused on mitigating the covid-19 outbreak and plans to reactivate the local economy.
Supporting macroeconomic stability, assisted by the Fiscal Responsibility Law, and strengthening the capacity to respond to the pandemic, through the programs that the government has implemented in response to the emergency, are two of the objectives that the loan approval is intended to fulfill.
Given the outbreak of covid-19 and the imposition of restrictions on economic activity, between February and June of this year the amount of loans granted by the banking sector reported a 1.2% drop.
Data from the Superintendence of the Financial System (SSF) indicate that between February (the month before the beginning of the health and economic crisis) and June of this year, the credit portfolio contracted by $149 million, from $13.276 million to $13.127 million.
In the countries of the region, more than 8 million people are looking for credit on the Internet. Of this group of consumers, approximately 9% explore options for taking out a student loan.
The interactive information system developed by CentralAmericaData monitors in real time the changes in consumer habits in all markets of the region, with fundamental information to understand the new commercial environment that has emerged in an accelerated manner.
IDB Invest granted an $8 million loan to American Industrial Park, owner of an industrial park in El Salvador, to invest in expansion works and the installation of a photovoltaic park for self-powered electricity generation.
The financing, with an 11-year term, will enable American Industrial Park (AIP) to maintain its competitiveness over the medium term by expanding its 17,000 square meter industrial roof.
In El Salvador, the Legislative Assembly decided to extend until June 1, 2021, the validity of the Decree of the Special Law to Facilitate the Cancellation of Agricultural and Livestock Debts.
The approval was made with the aim of giving the peasants who benefit from this regulation approved in 1998 a new period of 12 months to cancel the debts acquired with the banks, the Legislative informed.
With a $50 million loan from the IDB, the CMI Alimentos business group will expand its operations in Guatemala, El Salvador and Honduras.
The loan was placed through IDB Invest, a member of the Inter-American Development Bank (IDB) Group, and the operation is intended to finance fixed investments that will help CMI Alimentos continue improving its productivity.
With a loan from CABEI, the Salvadoran government will finance the construction of a viaduct and the extension to six 15-kilometer lanes of the CA01W road, Los Chorros section.
The investment aims to solve the problem of traffic congestion caused during peak hours in this section of the Pan American Highway CA01W, which mobilizes more than 327,000 people and 58,000 vehicles, with a reduction of travel time of approximately 35 minutes, explains a statement from the Central American Bank for Economic Integration (CABEI).
Up to July 2019, gross loans in the country totaled $12,840 million, 5% more than the amount reported in the same month of 2018.
With respect to the assets of the banking system, data from the Superintendence of the Financial System (SSF) detail that up to July of this year totaled $18.558 million, which represents a $1.016 million increase when compared to the balance of the same month in 2018.
Banco Agromercantil de Guatemala announced a $43 million loan for the construction of part of the 54 MW Ventus wind farm to be located in the municipality of Metapán.
The IDB loan will be used to finance the payment of pensions in general and of the Armed Forces, subsidize electricity, and increase salary scales for police officers and teachers.
The $200 million loan from the Inter-American Development Bank (IDB) has an amortization period of 20 years, a grace period of five and a half years, and an interest rate based on LIBOR, according to the international organization.
The Central American Bank for Economic Integration expanded the Social Fund for Housing's Global Line of Credit by $60 million to $100 million.
From the CABEI statement:
Tegucigalpa, May 24, 2019 - The Central American Bank for Economic Integration (CABEI) granted an extension to the Global Credit Line (LGC) of the Social Fund for Housing for US$ 60 million, the new amount is US$100 million.