A. M. The members of the Legislative Assembly’s Finance Committee issued a favorable opinion to modify the sovereign guarantee of a loan managed by the Fondo de Conservación Vial (FOVIAL) with the Central American Bank for Economic Integration (CABEI), with the goal of ensuring continued investment in road infrastructure and promoting the country’s economic recovery.
The decision seeks to support a second modification to the line of credit agreement between FOVIAL and CABEI. The original loan amount was US$250 million, but with this new approval, an increase of up to US$150 million will be allowed, bringing the potential financing to a total of US$400 million.
During the session, the legislators received the Director General of Investment and Credit, Marlon Omar Herrera, who explained that the expansion of the funds is necessary to comprehensively cover road maintenance and development needs nationwide, which is part of the government’s strategy to boost the economy.
Financing history indicates that the first contract was signed on december 9, 2022, for US$100 million. Subsequently, on august 14, 2024, a first modification was authorized, increasing the loan to US$250 million, which was ratified by the Legislative Assembly a few days later.
CABEI’s Executive Board approved the second modification, which will allow for the loan to reach US$400 million. This process reinforces the Salvadoran government’s commitment to sustainable road development and the strengthening of the country’s infrastructure network.
