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Latino Daily News

Saturday October 9, 2010

El Salvador Committed to Strengthening Its Financial Sector

The Government of El Salvador and the Inter-American Development Bank (IDB) have signed a contract for a $200 million loan to help strengthen the fiscal sector of El Salvador.

The signing was held during the visit to the Bank by the President of El Salvador, Mauricio Funes.  The contract was signed by President Funes, IDB President Luis Alberto Moreno, and the Finance Minister of El Salvador, Carlos Caceres.  The loan is part of a package of six operations approved by the IDB for El Salvador this year, totaling around $450 million.

The fiscal strengthening program, which was approved by the Board of Executive Directors last February, is intended to support El Salvador’s treasury and protect funding for social programs that benefit low-income groups.  The program will be implemented by the Salvadoran Ministry of Finance over a period of two years. It includes components of macroeconomic stability, tax reform, greater efficiency in tax and customs administration, rationalization and targeting of subsidies, and transparency of public finances.

The IDB Bank is the largest source of development financing for Latin America and the Caribbean and it’s shareholders are 48 member countries, including 26 Latin American borrowing members.