CABEI and the Government of El Salvador sign agreement to increase support for Micro, Small and Medium-Sized Enterprises
More than 21,000 Salvadoran companies will benefit, 70% of which are run by women, and more than 100,000 jobs will be retained.
San Salvador, July 16, 2021 - With the objective of increasing support for the efforts of the Salvadoran Government in the economic recovery of micro, small and medium-sized enterprises (MSMEs) and the conservation of the jobs they generate, this Friday the Central American Bank for Economic Integration (CABEI) and the Ministry of Finance signed an agreement for US$600 million for the implementation of the "Program to Support Economic Recovery Measures Implemented to Benefit Companies and Employment Affected by COVID-19".
On Tuesday, July 13, the country's Legislative Assembly approved the financing of this program, which will enable MSMEs to access employee subsidy schemes and financing for the formal and informal sectors, with the aim of benefiting more than 21,000 Salvadoran companies, of which 14,755 are headed by women, as well as retaining more than 100,000 jobs.
CABEI Executive President, Dr. Dante Mossi, highlighted: "This is the largest operation in the Bank's history and is of great importance because of the positive effects it will have on the Salvadoran economy, supporting the main source of employment in the Central American region, MSMEs, which will be able to access these preferential resources through 13 intermediary financial institutions.
This program has three financial support subprograms aimed at MSMEs, the first to provide subsidies to their employees for a total of US$140 million, the second to grant loans of up to US$360 million, and the third is the productive financing program for entrepreneurs and small traders in the informal sector for US$100 million.
The financing agreement was signed by CABEI Chief Country Officer Raúl Castaneda and the Minister of Finance of the Republic of El Salvador, José Alejandro Zelaya; CABEI Director for El Salvador, Luis Rodríguez, acted as honorary witness.