Tuesday, 08 November 2022 23:54

Treasury to request US$75 million loan from Development Bank of Latin America

Written by Evelyn Alas

The minister of Finance, Alejandro Zelaya, presented to the Legislative Assembly a request to subscribe a financing operation with the Development Bank of Latin America (CAF).

The financial operation that the Government is requesting with the multilateral institution is for US$75 million, which will be used to continue with the Government's response to the COVID 19 pandemic.

The loan that the Central Government is seeking with the bank will be for a 20-year term, with a 6-year grace period and an interest rate of 2%.

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According to the Minister of Finance, the operation is aimed at strengthening the capacities of the health sector, and is framed in an emergency line that the bank has put in place for all countries to continue fighting COVID19.

He said that, for the country, this is the first operation with the multilateral institution is important because it responds to an emergency and a concrete need, derived from a pandemic that has not yet ended.

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He emphasized that the health and even economic emergency caused by COVID-19 is still in force in the country and we must continue with the efforts that have been made since the beginning of the pandemic.

The representative of the Development Bank of Latin America, Oscar Avalle, explained that this operation recognizes the efforts made by El Salvador in the fight against a pandemic that has been stalking people around the world for several years.