CABEI adds $1.4 million to support agricultural MSMEs in El Salvador
This initiative has the potential to generate a positive economic and environmental impact that will enable MSMEs to access credit, non-reimbursable technical assistance, and an incentive scheme.
San Salvador, April 30, 2024. - The CAMBio II program of the Central American Bank for Economic Integration (CABEI) and the Green Climate Fund (GCF) made the second disbursement of US$1.1 million to continue supporting MSMEs in increasing their climate change resilience actions.
The funds have been granted to Banco Hipotecario de El Salvador, as an Intermediary Financial Institution (IFI), to benefit MSME clients operating in the agroforestry sector.
The CABEI and GCF CAMBiO II Program is intended to benefit Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, and the Dominican Republic; however, El Salvador continues to be the country with the greatest progress, with this new disbursement totaling US$1.4 million.
CAMBio II has a total of US$28 million available to contribute to the elimination of barriers in financial services for the adoption and implementation of climate change adaptation measures by MSMEs engaged in agroforestry, organic agriculture, silvopastoral systems, productive activities in private/community protected areas, forest management, tourism, sustainable fishing, and aquaculture, among others.
This disbursement will specifically benefit MSMEs located in the Departments of Santa Ana, San Salvador, Ahuachapán, Sonsonate, Usulután, and Morazán, which operate in the agroforestry sector, growing coffee, and cocoa beans, and generate approximately 150 permanent jobs.
The program's methodology allows credits to be provided through IFIs that have a current Global Line of Credit (GLC) with CABEI in the beneficiary countries, and the credit resources are co-financed by CABEI (50%) and GCF (50%).
