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The Finance and Special Budget Committee issued a favorable report authorizing the Government to expand the sovereign guarantee backing financing of up to US$103.7 million between the el Fondo Social para la Vivienda (FSV) and the Central American Bank for Economic Integration (BCIE). The measure aims to strengthen the FSV’s credit programs and facilitate access to housing for families, young people, and women.
Currently, the FSV holds a credit line of up to US$53.7 million with BCIE; however, the institution approved increasing the financing by an additional US$50 million. With this expansion, the credit line could reach US$103.7 million.
To back the new amount, it is necessary to expand the sovereign guarantee granted by the State—originally authorized by the Legislative Assembly in october 2022 and signed in march 2023. This guarantee allows the State to back the financial obligations the FSV incurs with the BCIE.
Before issuing the report, lawmakers received a technical opinion from Marlon Omar Herrera Hernández, director general of Public Investment and Credit. He explained that the guarantee would back the increase in the existing credit line. According to the official, the BCIE requires this modification as security for expanding the financing.
Herrera noted that this mechanism would enable the FSV to continue granting loans for housing programs and other housing solutions aimed at families seeking access to social-interest housing. These include the “New Housing under Special Conditions” program, which finances the purchase of new homes with terms of up to 30 years for formal-sector workers and up to 25 years for individuals with variable income.
Another program is “Casa Joven” aimed at individuals aged 18 to 35 for the purchase of new or used homes, with financing terms of up to 30 years. There is also the Vivienda Cercana program, designed for salvadorans living abroad and for residents receiving income from overseas, offering terms of up to 25 years.
The FSV also offers Casa Mujer, a program aimed at female heads of household—including single mothers, widows, and women in vulnerable situations—aged 26 to 50, to purchase new or existing homes with financing terms of up to 30 years. Complementing these programs is Vivienda en Altura, which facilitates the purchase of new or existing properties in high-rise buildings, also with terms of up to 30 years.
The expansion of the sovereign guarantee will enable the FSV to back an increase in its credit line with the CABEI, raising it from US$53.7 million to as much as US$103.7 million. These funds are earmarked for strengthening the housing finance programs through which the institution seeks to expand access to housing.
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