CABEI enables US$41.5 million for the economic reactivation of MIPYMES in El Salvador
These resources are part of the Emergency Program of Support and Preparation for COVID-19 and Economic Reactivation approved by the Bank for the countries of the Central American Integration System (SICA).
San Salvador, September 8. - The Central American Bank for Economic Integration (CABEI) has made the first cumulative disbursement of US$41.5 million to five financial institutions in El Salvador.
These funds will contribute to the economic reactivation of the companies that are looking for support to solve difficulties caused by the international crisis derived from COVID-19. The resources come from the CABEI's Financial Sector Support Facility for the Financing of MIPYME.
The availability and use of these resources seek to maintain jobs and the re-hiring of personnel dismissed since March 11, 2020. The financial institutions of El Salvador that offer CABEI's facilities are BANDESAL, Banco Hipotecario, FEDECREDITO's Network, Banco Promerica and Banco de Los Trabajadores Salvadoreños.
The funds of the Facility allow to attend to the different sectors affected by the pandemic, among them are: Production of the agro-food chain, hotel and tourism, construction, creative industry and media, trade at a general level, and service provision companies, among others.
The MIPYMES will benefit from financing to meet working capital needs and operating obligations; this in turn will protect the employment generated by this important business sector in the country.
CABEI's Executive President, Dr. Dante Mossi, commented "five institutions have joined the great regional effort to reactivate the engine of our economies; MIPYME represent a very important workforce in the region. Maintaining and strengthening them brings with it a chain of benefits for the development of our countries. These allied institutions have a relationship with CABEI in favor of development for more than 10 years; we are sure that we will continue to provide jobs for El Salvador through them.”
The Financial Sector Support Facility for the Financing of MIPYMES is part of the Emergency Program of Support and Preparation for COVID-19 and its Economic Reactivation, approved by CABEI on March 31, 2020 for an amount of US$2,360.1 million to date, in response to the impacts of the pandemic.
It has resources from CABEI, the Government of Germany through KfW, the European Union and Taiwan ICDF, which can be complemented with other funds for seed capital, non-refundable technical assistance, and partial credit guarantees.
The Facility has been presented by CABEI to different financial institutions, CONAMYPE and business networks in El Salvador. Those interested in obtaining these financial resources can contact the above mentioned institutions or CABEI through www.bcie,org.