MICROCAPITAL BRIEF: El Salvador to Borrow $20m from IDB to Benefit 2k Micro-, Small Businesses; Including 20% Owned by Women

The Inter-American Development Bank (IDB), a multilateral institution whose membership comprises 26 countries, recently approved a loan of USD 20 million to El Salvador to provide 2,000 micro- and small enterprises (MSEs) with “access to credit under better term[s].” Banco de Fomento Agropecuario de El Salvador (BFA), a government-backed institution, will implement the program. Of the MSEs impacted, at least 400 are to be located in “highly marginalized municipalities” and an additional 400 are to be owned or operated by women.

BFA provides financial services to farmers and consumers as well as micro-, small and medium-sized enterprises via 45 service points.

Established in 1958, IDB is focused on promoting economic development in Latin America and the Caribbean. During 2018, IDB issued USD 14.2 billion in loans and guarantees, reaching USD 93 billion in total loans outstanding and generating USD 752 million in operating income.

Sources and Additional Resources

IDB press release

https://www.iadb.org/en/news/el-salvador-will-boost-credit-micro-and-small-businesses-idb-support

BFA homepage

https://www.bfa.gob.sv

IDB profile on El Salvador

http s://www.iadb.org/en/countries/el-salvador/overview

Additional MicroCapital coverage on IDB

https://www.microcapital.org/?s=IDB

Additional MicroCapital coverage on El Salvador

https://www.microcapital.org/?s=Salvador

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.