In order to achieve this objective, CABEI will make its best effort to manage resources from external sources for up to US$100 million, under the co-financing mechanism, subject to the approval established in the financing from said sources.

Among the development policies to be supported through this financing are the strengthening of the government's revenue and expenditure administration through measures to reduce the fiscal gap, focused on increasing tax collection, reducing smuggling and tax evasion, as well as improving tax control through the implementation of electronic invoicing; and the economic reactivation and promotion of trade and local and foreign direct investment.

"We are pleased to approve a second OPD to our founding partner, the Republic of El Salvador, to support it in the implementation of the policy actions with development results that it has established as priorities to maintain its macroeconomic stability and ensure the well-being of more than 6.5 million inhabitants, with special emphasis on vulnerable groups", said CABEI Executive President, Dr. Dante Mossi.

This operation also contemplates climate action and the low-emission energy transition, encouraging actions related to adaptation and mitigation, as well as promoting the technological transition of the mobility sector; in addition to protecting vulnerable groups, promoting actions aimed at improving social conditions that support the reduction, and social prevention of violence, with an emphasis on the eradication of violence against women.

This is the second OPD that CABEI approves for El Salvador; the first was on august 26, 2020 for the country's economic reactivation, attention to vulnerable groups, safeguarding employment and strengthening macroeconomic stability.

The financial conditions will be for a 20-year term, including a 5-year grace period and an indicative annual interest rate of 7.41%.

Translated by: A.M