Fedecrédito to Finance Construction of Municipal Markets

The Federation of Credit Unions in El Salvador hsa signed a $20 million loan with the IDB for the construction and renovation of municipal markets.

Friday, July 29, 2011

Macario Armando Rosales, president of Fedecrédito said that funds from the Inter-American Development Bank will be directed to the municipalities through long-term loans.

The program aims to improve the conditions under which products and services are sold for large number of micro and small entrepreneurs.

Rodrgo Childbirth, IDB representative in El Salvador, told Elsalvador.com that "this is an attempt to strengthen the development and competitiveness of microenterprises. It also aims to encourage the development of public-private partnerships to generate sustainable business models in different municipalities around the country ".

The article adds: "The contract is part of the Opportunities for the Majority initiative that seeks to increase competitiveness and income for microentrepreneu, a segment of the population with low income."

More on this topic

More Banking Correspondents in El Salvador

July 2013

The Federation of Credit Unions and Workers' Banks is to open 200 points of service in shops, pharmacies, and other retail areas.

With an investment of $5 million in technology, Fedecrédito next month will open 70 'Fede Punto Vecinos' (Fede Point Neighbors), out of a total of 200 non-banking correspondents which it plans to have by late 2013.

$200 million Available for SMEs

May 2012

Fedecrédito is looking to grant $236 million more in 2012 than last year in order to expand its credit supply in El Salvador.

Fedecrédito system, focusing on the sector of micro and small businesses, aims to grant $236 million in loans in 2012, bringing its portfolio to $1,031 million.

El Salvador: $30 Million for Fedecrédito

June 2010

The International Financial Corporation, part of the World Bank, will loan $30 million to Fedecrédito, for it to extend its loans to micro companies.

Armando Rosales, president of Fedecredito, explained that the collateral of these loans will be the flow of remittances sent by Salvadorans living abroad.

Alternative financing options for the private sector

October 2008

In times of credit crunch from the usual sources, it is appropriate to remember that there are other alternatives for financing projects.

The Andean Development Corporation (CAF), the International Finance Corporation (IFC) of the World Bank, the Inter-American Investment Corporation (IIC) of the IDB, and the Central American Economic Integration Bank (BCIE) are all sources of financing for high impact development projects by the private sector which are highly unused by our bankers and businesses.