The Inter-American Development Bank (IDB) has approved a $100 million loan to provide productive lending to El Salvador’s micro, small and medium enterprises (MSMEs).
The funds will finance a line of credit from the Development Bank of the Republic of El Salvador (Bandesal) to an intermediary financial institution, which is expected to increase employment and income for Salvadoran businessmen.
The IDB recalled that the loan was part of the Contingent Line of Credit for Investment Projects (CCLIP), which was approved in July 2020 for $400 million. This is my third surgery on my own.
The amortization period of the business is 25 years and the grace period is 5 years.
In a statement, the IDB noted that 99% of El Salvador’s microenterprises have access to informal loans (loans), which typically pay restrictive interest rates.