dinero_admin 
The Comisión de Hacienda y Especial del Presupuesto issued a favorable opinion for the State to grant a sovereign guarantee to the Banco de Desarrollo de la República de El Salvador, to secure a US$100 million loan aimed at strengthening access to credit for Micro, Pequeñas y Medianas Empresas (MIPYMES) and promoting job creation in the country.
The financing would be obtained through the Banco Internacional de Reconstrucción y Fomento (BIRF) and would be used to implement the project called “Improved Financial Intermediation for Job Creation”.
As presented to the legislators, the program seeks to expand financing opportunities for MSMEs, providing resources to boost the growth of small businesses, strengthen their productivity, and generate more jobs.
The initiative includes increasing the funds available to intermediary financial institutions so they can grant a greater volume of loans to micro, small, and medium enterprises in different economic sectors.
The Director of Investment and Public Credit at the Ministry of Finance, Marlon Herrera, explained that the project will consist of two main components.
The first is the Crédito Multidestinos for MSMEs, through which BANDESAL will work with intermediary financial institutions such as banks, cooperatives, and savings and loan associations.
“This refers to the efforts that BANDESAL will undertake with intermediary financial institutions, focusing on banks, cooperatives, savings and loan associations, among others”, Herrera explained during the legislative committee session.
The second component will be the Fondo de Garantía Parcial de Crédito designed to reduce financial risks and facilitate access to loans for more businesses with more competitive terms.
According to authorities, this mechanism will lower traditional guarantee requirements and expand access to financing for small business owners who typically face difficulties obtaining credit.
The project also seeks to mobilize private capital and promote more inclusive financial schemes to support the growth of MSMEs in the country.
The loan would have a term of up to 18 years and six months, including a grace period of up to five years, during which no principal payments would be made.
Subsequently, the debt would be repaid through consecutive semi-annual installments until the total loan amount is amortized.
In addition, the agreement includes an initial commission equivalent to 0.25% of the total loan amount, which would be financed with the same funds obtained. An annual commitment fee of 0.25% on the outstanding funds is also included.
The favorable opinion approved by the Finance Committee must be submitted to the full Legislative Assembly, where the representatives will decide whether to officially authorize the sovereign guarantee for the financial transaction.
You can also read:
