The loan amounts to US$100 million and will be used to finance the Access to Credit Program for Micro, Small and Medium Enterprises (MSMEs).

Representatives of the Treasury explained that this loan agreement will benefit approximately 4,000 micro, small and medium-sized enterprises that BANDESAL serves through its loans.

BANDESAL's resources are used to support the growth of MSMEs and this is done to promote access to second-tier productive loans.

Through this operation, the beneficiary MSMEs are expected to increase their sales revenues. It is also expected to contribute to job creation and have a positive impact on the business fabric.

The Asociación Bancaria Salvadoreña (ABANSA), indicates that 99% of microenterprises in the Central American country, particularly those engaged in commerce, regularly access informal loans under usurious financial conditions.

This is the fifth loan operation for this amount of money, with a 25-year repayment term, a five-and-a-half-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).

This is a rate based on repurchase agreements, which are overnight lending transactions secured by U.S. Treasury securities.

Translated by: A.M