The Inter-American Development Bank has granted a loan that will be used to finance energy efficiency projects for small and medium-sized companies.
The funds for this loan come from the Green Climate Fund (GCF) and will be executed by the Development Bank of El Salvador (BANDESAL). The objective of the financing granted is to support the efforts being made by SMEs in El Salvador to reduce electricity consumption and limit greenhouse gas emissions, reported the Inter-American Development Bank (IDB).
The loan will benefit more than 1,000 producers by providing access to co-financing for enhancing trade capacity.
A press release by Inter-American Development Bank (IDB) states:
The Inter-American Development Bank (IDB) has approved a loan of U.S. $30 million to El Salvador for the program of Development Support Production for International Integration, which will increase the ability of micro, small and medium enterprises (MSMEs) to participate in national, regional and global value chains.
Government officials announced a $ 4 million fund to strengthen performance of MSMEs.
Mario Cerna, Vice Minister of Commerce and Industry told the media: "It is a state investment in micro, small and medium businesses looking to become more efficient, that is to reduce costs and produce more, but also implement technology in their production processes, including helping them to innovate their products."
The program will benefit 30 organizations and seeks to raise levels of competitiveness in Small and Medium Enterprises.
The pilot project is funded by the Inter-American Development Bank (IDB) and the Italian Cooperation, will last three years and benefit associations belonging to the central area of the country.
"The $ 1.4 million will be injected through assessments of the sector, training, application of technology, conduction of market research, business plans, technical assistance and business consultancy among others. The idea is that five years from now we have increased aquaculture production and tourism in the region," said Carlos Rodriguez, an IDB expert according to the article in Laprensagrafica.com.
By year's end, the draft would be ready for submission to the National Assembly in early 2011.
The National Commission for Micro and Small Enterprises (CONAMYPE) went through the last stage of consultations for the proposed law for micro and small enterprises (SMEs).
During this phase, meetings have been held with trade associations, financial intermediaries and others, and is the latest step in presenting the bill to the Legislature later this year or early 2011. "We would expect a good reception by the Legislature so this law can become a reality by middle of next year, or before," said Ileana Rogel, Director of CONAMYPE to Laprensagrafica.com.
The Overseas Private Investment Corporation (OPIC) approved funding to Lafise Bank in order to support small and medium enterprises (SMEs) in the region.
With better access to long-term credit, small-scale farmers, manufacturers and owners of retail businesses will be able to grow faster and in turn support their local economies.
OPIC resources will strengthen the capital base of Lafise Panama Group, Inc.
$4 million have been earmarked for the initial development of the so-called CDMYPES, or Centers for the development of Micro and Small Companies (SME).
The announcement was made by Mario Cerna, vice minister of Commerce and Industries, noting that these centers should be open by the end of 2010.
Cerna told Laprensagrafica.com that they already have $2 million from the ordinary budget, enough to cover staff costs for each center.
The loan is being negotiated with BNDES, the National Development Bank of Brazil, and would be used in development projects.
President Mauricio Funes expects to sign the loan in the first quarter of 2010.
"According to Funes, the loan being negotiated is for $500 million and would be geared to supporting micro, small and medium companies", reported Invertia.
Xpand Group offers to its clients global support in exports. With its network, the company gives access to small and medium enterprises to new markets such as: North America, Central America & Europe
Organization that operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Phone: (506) 2225-0435 - (506) 2524 2800
The government's plans include increasing training programs and easing access to banking credit for SMEs.
The authorities will also work in regulating informal businesses, for them to be able to access SME benefits.
"... the benefits of formality, like registering their brands and inventions in the National Registry...; we will create one-stop processes to speed up paperwork on the different government entities involved in starting and operating a new company...", reported Elsalvador.com.
Through the Millennium Challenge Corporation (MCC), $85 million have been allocated to promote investment in northern El Salvador.
The funds will finance MSMEs interested in developing projects that generate employment in various areas such as agriculture, catering and handicrafts.
Keny Miller, resident director of the MCC told La Prensa Gráfica: "This sector (MSMEs) is part of a growing country strategy and we see how it contributes to economic and social development."
The AgroCAFTA project aims to increase the competitiveness of SMEs that export.
The Corporation of Salvadoran Exporters (Coexport), the organization that is promoting the project in the country, aims to train SMEs in the technical requirements of exporting.
La Prensa Grafica of El Salvador published: "The project is financed by the Inter-American Development Bank (IDB), with a contribution of $3.8 million which includes the entire region and seeks development in three areas: technical assistance, financing and training."