The parliamentarians issued a favorable opinion for the first modification to the Guarantee Contract that guarantees the Global Credit Line loan, signed between Banco de Desarrollo de El Salvador (BANDESAL) and CABEI, which will support Micro, Small and Medium Enterprises (MSMEs), generate new employment opportunities and promote the development of the country's exports.

The official explained that this is a 36-month financing, extendable for additional annual periods equal to or less than BANDESAL's requirements.

According to the Treasury representative, this initiative has made it possible to: finance economic reactivation in different sectors, improve the competitiveness and income generation of MSMEs at the national level, maintain and generate new job opportunities, and promote the development of the country's exports.

The second initiative is aimed at subscribing a loan to finance the Water Sector Resilience Project in El Salvador, signed between the Ministerio de Hacienda and the Banco Internacional de Reconstrucción y Fomento (BIRF).

Most of the funds will be used to improve the quality and efficiency of water services in the San Salvador metropolitan area. Other programs that the loan will allow will be: the Administración Nacional de Acueductos y Alcantarillados (ANDA) will implement a non-revenue water program, replacement of pipes that have reached their useful life in specific areas.

The third initiative is related to modifications to loan contracts subscribed between the Ministerio de Hacienda and CABEI that contemplate the substitution of the Libor rate.

Due to modifications at an international level where the Libor rate is substituted to another known as SOFR index; it is necessary to change all loans with said institution. This replacement will allow better conditions, due to the fact that the reference rate allows it at this time. There is a benefit in favor of the State.

Translated by: A.M