More Salvadoran households benefit from CABEI credit

The Central American Bank for Economic Integration (CABEI) signed a contract to expand a credit line to the National Public Housing Fund (FONAVIPO1) by US$30.0 million to benefit Salvadoran families.

Central America has more than 4.8 million deficient housing units and, specifically in El Salvador, 58% of households have some need for improvement, a percentage that is more dramatic in rural areas, with 74% of households needing improvement. The complexity of the problem requires coordinated solutions and financial resources in order to increase access to adequate housing.

With the expansion granted by CABEI, FONAVOPO’s credit line increases from US$70.0 million to US$100.0 million. The funds will be allocated to intermediated credit programs and housing projects to provide affordable housing for low-income families, as well to as to social housing solutions.

CABEI Country Manager for El Salvador, Raúl Castaneda Trabanino and the President of FONAVIPO’s Board of Directors and Vice Minister of Housing and Urban Development, Architect José Roberto Góchez, signed the expansion contract.

The expansion of the line is intended to support credit programs designed especially for women in order to promote gender equity and the empowerment of women, in addition to supporting traditional social housing programs. The funds will also be allocated to municipalities with high levels of community participation. In this way, the Bank is also contributing to the achievement of the Millennium Development Goals (MDGs).

The products and credit lines that FONAVIPO makes available to the public through its authorized institutions include instruments for the purchase of new and used housing, construction and improvement of housing, buying lots and development of social housing projects, among others. In the future it is expected that the municipalities will act as credit intermediaries for housing improvement, thereby expanding the number of beneficiaries.

This initiative is in the framework of CABEI’s 2010-2014 Institutional Strategy, "Competitiveness with Social Integration and Development", and is specifically in line with the strategic axis of social development, with a special emphasis on its focus area of human development and social infrastructure.

The Bank’s projects and contributions prioritize efforts aimed at target groups that are most in need of financial support, in particular to increase their quality of life through providing housing solutions and strengthening their coverage of basic needs and services.

In this area, CABEI has disbursed more than US$168 million in the Central American region, benefiting more than 20,048 low-income households that now have more dignified housing.