A. M. 
Courtesy
The members of the Legislative Assembly approved the granting of the Sovereign State Guarantee to a revolving credit line agreement between the Fondo de Conservación Vial (FOVIAL) and the Central American Bank for Economic Integration (CABEI), for an amount of up to US$250 million, with the purpose of supporting the work that FOVIAL carries out related to the country’s road infrastructure.
The funds will be used to carry out projects for road conservation, risk mitigation, and user services nationwide. The granting of the Sovereign Guarantee to the Global Line of Credit contracted with CABEI will allow FOVIAL to continue with the interventions aimed at the conservation and improvement of the road infrastructure, as well as the economic development and competitiveness of El Salvador.
In addition, with 55 votes, they approved a loan agreement signed by the Fondo de Conservación Vial (FOVIAL) and the Central American Bank for Economic Integration (CABEI) for up to US$92,605,000. These resources will be used for infrastructure development, road maintenance, risk mitigation, and user services at the national level, thus contributing to the country’s economic reactivation.
In august 2007, FOVIAL signed a US$60 million loan agreement for improving and preserving various stretches of unpaved roads that make up the “Suburban and Rural Roads Program. Subsequently, it was increased to US$92.6 million.
The financing of this loan does not constitute a new debt for FOVIAL, because it was already used in due course, it is in repayment period, and the guarantee requirement is intended to standardize it.
