CABEI approves US$250 million to support development policies in the Republic of El Salvador
The resources will be allocated to economic reactivation, attention to vulnerable groups and to safeguard employment in the country.
San Salvador, August 27, 2020 - The Central American Bank for Economic Integration (CABEI), approved a financing for US$250 million dollars to the Republic of El Salvador with the objective of joining efforts for health care caused by COVID-19 and its impact on vulnerable groups, as well as the stability and reactivation of the Salvadoran economy.
The intervention is in line with CABEI’s Development Policy Operations Program, which is available to founding and non-founding regional countries. The purpose of this program is to provide financing to governments and promote balanced economic growth, poverty reduction, sustainable development and combat climate change, through policy actions and development results that are priorities for the countries and that strengthen the maintenance of macroeconomic stability.
The development policies supported by CABEI for this loan are concentrated on four pillars:
- Support macroeconomic stability, assisted by the Fiscal Responsibility Law.
- Strengthen the response capacity to the pandemic, through the programs that the Government has implemented in response to the emergency.
- Protect vulnerable groups and employment by supporting actions aimed at maintaining people’s income, and implementing measures that prevent violence.
- Promote economic reactivation through actions that support companies to restart operations and availability of resources to maintain current employment.
In relation to this operation, CABEI’s Executive Presiden, Dr. Dante Mossi, indicated that “the stimulus packages for the COVID-19 pandemic are aimed at the need to boost economies to accelerate investments aimed at overcoming the social and economic challenges of our member countries”.
For his part, Mr. José Alejandro Zelaya, Minister of Finance of the Republic of El Salvador, expressed his gratitude to CABEI authorities for the important support provided to the country through its different cooperation mechanisms, especially to assist the emergency generated by the COVID-19 Pandemic, and that this Operation for $ 250 million approved by the Bank is crucial in the efforts and actions of the Government of the Republic of El Salvador, to contain the health crisis derived from the Pandemic and to support the economic recovery of the country.
CABEI reiterates its determined support for the country, which has been a founding member since 1960, mainly in these moments of crisis in which the support of multilateral banks through timely credits becomes of crucial importance for the region.