A. M. The Legislative Assembly approved the government’s signing of a loan of up to US$100 million with the International Bank for Reconstruction and Development (IBRD) to strengthen its response capacity to natural disasters and health emergencies. The initiative received the support of 57 representatives in the plenary session.
The financing, called “Development Policy Loan for Fiscal Sustainability and Resilience in El Salvador with a Deferred Drawdown Option,” will have a 30-year term and a five-year grace period. This scheme will make resources available only in the event of a catastrophe to finance response and recovery operations.
Due to its geographic location, El Salvador is highly vulnerable to hurricanes, tropical storms, earthquakes, and public health emergencies. In this context, access to contingent funds becomes essential to minimize economic and social impacts.
According to the approved decree, the resources will be used to guarantee macroeconomic stability in crisis situations and to strengthen emergency planning and management. The immediate availability of financing will reduce the risk of fiscal imbalances caused by unforeseen events.
The authorities emphasized that this financial tool will allow the country to act quickly in high-risk scenarios, protecting the population and maintaining economic order in the short and medium term.
