CABEI and Ministry of Finance sign US$200 million loan contract to mitigate fuel price hikes
The purpose of this financial support is to help Salvadorans maintain the price of fuels so that their fluctuations do not affect them to a great extent.
San Salvador, July 29th, 2022 - With the aim of reducing the impact of rising fuel prices on the pockets of Salvadorans, authorities from the Central American Bank for Economic Integration (CABEI) and the Ministry of Finance today signed a US$200 million loan contract for the "Temporary Support Program to Address Rising Fuel Costs in Founding and Non-Founding Regional Countries.
The Bank designed this program to protect the purchasing power of countries in the region with an amount of up to US$800 million. El Salvador was one of the first countries to apply for this financing after its launch, and today it has formalized it.
At this time, CABEI is continuing to take steps to co-finance an additional US$20 million for a total of US$220 million, in accordance with the amount approved by CABEI.
¨Our job is to support the countries of the region and with this initiative we know that we are supporting not only the country's productive sector, but all Salvadorans who use fuels, that is, everyone, because we are all affected by this increase. I am very pleased that this important loan contract has been signed today," said CABEI Executive President, Dante Mossi.
The operation is part of CABEI's 2020-2024 Institutional Strategy in its Sustainable Competitiveness axis, which seeks to promote the strengthening of economic factors, in its commercial sphere, to advance the sustainable development of the countries in the region.
The signing ceremony was attended by the Minister of Finance, Alejandro Zelaya, CABEI Country Chief Officer in El Salvador, Raúl G. Castaneda Trabanino, and the staff of both institutions.