CABEI and Government of El Salvador sign agreement to develop educational infrastructure works
The funds will be used to rebuild and remodel at least 186 schools, which will be equipped with new technology to develop students' skills.
San Salvador, July 28, 2021. – On Wednesday afternoon, the Central American Bank for Economic Integration (CABEI) and the Government of El Salvador signed a US$200 million credit agreement for the Mi Nueva Escuela Program, which aims to strengthen Salvadoran education and consolidate the development of disadvantaged areas.
The program will strengthen the educational levels of 55,401 students per year in preschool, primary, secondary, and high school through the reconstruction and remodeling of 186 schools in 10 of the country's 14 departments.
In this regard, CABEI Executive President, Dr. Dante Mossi, highlighted that "this agreement is a concrete step by the Government and the Bank to ensure quality education in optimal conditions for children and young people, thereby reducing the student dropout rate and providing continuity to the educational transformation processes in El Salvador.
He added that the financing is part of CABEI's Program for the Reduction of Poverty and Economic and Social Exclusion (PRPEES), which aims to improve the quality of life of the region's inhabitants by financing operations to address the investment needs of the poorest and most excluded communities.
The agreement was formalized by the Salvadoran Minister of Finance, José Alejandro Zelaya, and CABEI Country Chief Officer Raúl Castaneda.
The loan is for 25 years, with five years of grace, with financial conditions of fixed interest rate of 1.50%.