El Salvador: Credit to MSMEs

The start of 2012 will see the launch of the new Development Banking System, which has $200 million in credit to support micro, small and medium enterprises.

Monday, February 6, 2012

Bandesal has, to start off with, $200 million for small and medium enterprises."However, we are aiming later on to provide funding for large enterprises, preferably those that require large investments such as construction and agricultural industries, said the technical secretary of the Presidency, Alexander Segovia," in an article by from Daniel Gonzalez Choto a ElFinancierocr.com correspondent in Costa Rica.

"The productive sectors will have priority, but also working capital will be given to strategically backed sectors such as energy, tourism export industry, foreign investment and projects in education and health, said Cesar Barahona, Bandesal commercial director", according to the website .



More on this topic

Credit for MSMEs in Costa Rica

April 2012

Increased credit is available for mini, small and medium enterprises in the Banco Popular and Banco Nacional in Costa Rica, bringing the amount available to $740 million.

Banco Nacional now has ¢ 250,000 million ($493.66 million) for the productive sector, 50,000 million colones ($98.7 million) more than in 2011, said Victor Eduardo Acosta, director of the entity’s Development Bank.

Salvadoran Development Banking Law Comes into Effect

January 2012

From January 19th with the entry into force of the law to encourage development the Banco Multisectorial de Inversiones (Multisectoral Investment Bank) will operate as Banco de Desarrollo, (Development Bank or BDES).

The bank can then direct lending to small and medium enterprises (SMEs). At the moment it can only do so through lines opened by private banks.

Development Banking Relaunched in El Salvador

February 2011

Banco Multisectorial de Inversiones will become the Development Bank, with current capital of $ 202 million.

The new Development Bank aims to attend productive sectors which are not served by commercial banks and expects to receive capital for up to $ 1.200 million through bond issues in domestic and international markets and also financing from the Central American Bank for Economic Integration (BCIE) and other multilateral agencies.

El Salvador: Development Banking Starts in January

December 2010

Authorities argue that the creation of this institution will be of great assistance to MSEs.

The announcement was made by President of El Salvador Mauricio Funes in the First Business Meeting on Micro and Small Enterprises (MSEs).

The president also announced the launch in January 2011 of a program called “Family farming”, aiming at providing technical and financial assistance to families with greatest economic needs in the country writes Laprensagrafica.com. "... The program will be implemented in order to provide more comprehensive benefits to farmers of the country..."