A proposal has been made that the municipalities seek financing by securitizing their income, requiring information on their financial capacity.
From a press release issued by the Legislative Assembly of El Salvador:
The Finance Commission today launched the consultation phase for a draft amendment to the Law on Securitization of Assets, to hear the views and comments of the leaders of the Superintendency of the Financial System (SSF), the Central Reserve Bank (BCR), the Stock Exchange of El Salvador (BVES), and institutions specializing in asset securitization HENCORP Valores, S.A. and RICORP Titularizadora S. A.
IFC will finance part of $ 44 million in road repairs in Tegucigalpa and Comayaguela.
The money will be channeled through three local banks: Ficohsa, Atlantida and Banco de Occidente, covering 36% of the $ 44 million credit loan the municipalities have with these banks.
This is the first sub-national credit the International Finance Corporation (IFC) does in Honduras and serves as a mechanism for credit sharing, allowing local banks to overcome limits of funds they can lend, providing better conditions for long-term investments.