The representative of the Latin American Development Bank in El Salvador, Óscar Avalle, has reiterated his congratulations to the country for the upward trend in credit ratings by Fitch Ratings and S&P Global Ratings.
The Latin American Development Bank (CAF) foresees that the country’s risk ratings will continue to improve due to the government’s efforts to address its finances and ensure sustainable development, as stated by Óscar Avalle, the organization’s representative in El Salvador.
“Undoubtedly, the ratings will continue to improve; we hope so. And we will continue to support the country,” said Avalle to “Diario El Salvador.”
The executive once again congratulated the country for the credit rating upgrades announced by Fitch Ratings and Standard & Poor’s (S&P Global Ratings) in the past week. Fitch raised El Salvador’s credit rating by three notches, from CC in their February report to CCC+ in the May document, while S&P upgraded the long- and short-term sovereign credit ratings to CCC+/C, affirming a stable outlook for the long-term rating.
“These ratings are milestones, reflections of what is happening in society. The congratulations I extend, both for the improvements by Fitch and S&P, are for the effort that El Salvador has made to reach this point,” emphasized Avalle.
“The important thing is the effort being made to improve finances, ensure sustainable development in the country, and create the necessary conditions for people to stay and believe in the potential for development in this country,” he added.
In this context, the multilateral delegate assured that they would continue to support El Salvador’s efforts “to move forward and enter a path of sustainable development.”
To date, the organization has approved a portfolio of $375 million for the country in various projects.
Avalle detailed that $300 million has already been disbursed to support the COVID-19 emergency response, digital education, and resilient infrastructure. He also mentioned that $75 million was recently approved for customs and trade facilitation.
“As you can see, you joined us a year ago, and you already have a portfolio of $375 million, which is quite impressive. We are working with the Government of El Salvador to identify strategic areas such as water, customs, trade facilitation, health, logistics infrastructure, and telecommunications, to create the necessary conditions for sustainable and inclusive growth in the country,” he explained.
Finally, the representative of the organization expressed optimism about El Salvador’s incorporation into the regional debt market.
“We are very optimistic. It is a lengthy process in which you are involved. The Minister of Finance [Alejandro Zelaya] and the entire government are doing everything possible to make that market emerge, and if it does, it will be a highly effective financing instrument for the entire region,” concluded Avalle.