The World Bank has approved a new loan to support El Salvador’s fiscal sustainability and its capacity to respond to natural disasters and climate change, according to an official announcement released a few days.
Structured around two central pillars, the program seeks to strengthen public financial management and improve climate resilience across the country. The first pillar focuses on promoting fiscal sustainability by modernizing El Salvador’s civil service framework, streamlining the public payroll, and increasing the efficiency of public investment. It also includes reforms to attract private capital into national infrastructure through enhanced regulations for public-private partnerships and mixed-economy enterprises.
The second pillar centers on climate adaptation and disaster preparedness. This includes introducing financial risk management tools, enforcing safer construction standards, and improving emergency response mechanisms. It also supports urban planning efforts in San Salvador, aiming to benefit over 200,000 residents through the development of green spaces designed to reduce the impact of extreme heat and flooding.
This loan is aligned with the goals of El Salvador’s current agreement with the International Monetary Fund (IMF), particularly in reinforcing fiscal sustainability and prioritizing resilient investments.
With this strategic partnership, El Salvador continues to strengthen its institutional capacity and environmental preparedness—key areas for long-term national development and stability.