Bandesal, the state-owned bank, will channel $100 million in funds from the Inter-American Development Bank (IDB) to benefit around 4,000 Mipymes (micro, small, and medium-sized enterprises).
The financing, which will benefit an estimated 4,000 Mipymes, will be offered on upcoming dates to be officially announced through Bandesal’s initiative called the «Credit Access Program for Micro, Small, and Medium-Sized Enterprises.»
According to Bandesal’s President, Moisés Cabrera, this operation is expected to increase the sales revenues of the beneficiary Mipymes, projecting positive effects on the business fabric, as well as the generation of direct and indirect jobs.
«Bandesal has always played a relevant role in supporting Mipymes, contributing to and managing sources of financing for the support of these business segments. Thanks to this financing, we will continue to strengthen the growth of Mipymes and promote the expansion of access to medium and long-term productive credit,» he added.
Meanwhile, Minister Zelaya indicated that this exclusive credit line is «very likely» not available in the national banking system and is part of the government’s strategies to benefit the business sectors.
«El Salvador has experienced a new revitalization of entrepreneurship since the arrival of President Nayib Bukele. The strategies to assist the business sectors in our country have changed positively,» highlighted the official.
The IDB spokesperson in the country, César Falconi, confirmed that 4,000 companies will benefit from the $100 million financing.
«We are improving lives in El Salvador. Today, we signed with Minister of Finance Alejandro Zelaya and the President of Bandesal the new Credit Access Program for Micro, Small, and Medium-Sized Enterprises for $100 million, which will benefit 4,000 companies,» he emphasized.
According to official information, the only component of the program is productive credit, which will finance sub-loans to Mipymes through eligible Intermediary Financial Institutions (IFI) accessing Bandesal’s second-tier credit lines.
These sub-loans can finance productive activities that enhance the operational capacity of businesses in this sector, including fixed assets and working capital, thus promoting their recovery and growth.
The sectors that may be financed include commerce, services, manufacturing industry, small-scale construction, and agriculture. The sub-borrowers can be natural and legal persons from all sectors of the economy considered as Mipymes.
As for the financing conditions, it offers a term of up to 25 years (including up to 5.5 years of grace period) at a variable interest rate based on the reference rate plus the IDB margin. There is an option to convert to a fixed interest rate or any other available rate, as detailed by the multilateral organization.