CABEI and the Government of El Salvador sign financing for the economic and sustainable recovery of the country

San Salvador, January 5, 2023. –  Authorities of the Central American Bank for Economic Integration (CABEI) and the Ministry of Finance (MF) of El Salvador recently formalized the credit for US$250 million that seeks to strengthen the administration of government revenues and expenses through measures to reduce the tax gap and increase tax collection, as well as reduce smuggling and tax evasion.

The financing is framed in the Development Policy Operations Program (DPO) of the Bank and will be complemented by an additional US$100 million from external sources, with which the multilateral institution will accompany the Government of El Salvador in the management of financial resources, under the co-financing mechanism, subject to the approval and conditions established by the sources to be identified, for a total of US$350 million.

“Supporting a founding partner in their most pressing needs is CABEI’s fundamental purpose, we are very happy to sign this loan agreement with which the authorities will be supported in the implementation of measures that improve the quality of life of the over 6.5 million Salvadorans,” said CABEI’s Executive President, Dr. Dante Mossi.

This operation is also expected to improve oversight through the implementation of electronic invoicing, as well as boost economic reactivation and the promotion of local and foreign trade and direct investment.

Also contemplated in this operation is the low-emission energy transition, encouraging actions related to the adaptation and mitigation of climate change, the promotion of the technological transition of the mobility sector and the protection of vulnerable groups, promoting actions aimed at improving social conditions that support the social prevention of violence, with emphasis on women.