OPEC Fund extends US$25mln loan to El Salvador to support small and medium-sized businesses

In El Salvador, SMEs represent over 95% of all businesses

  

The OPEC Fund for International Development is providing a US$25 million loan to Banco Promerica in El Salvador for on-lending to small and medium-sized enterprises (SMEs) and women-owned businesses to promote the economic recovery of the sector, which has been severely impacted by the COVID-19 pandemic.

In El Salvador, SMEs represent over 95% of all businesses and significant contributors to job creation and economic development. The OPEC Fund’s loan will strengthen Banco Promerica’s ability to provide financing to SMEs, promote employment and support growth. Banco Promerica’s on-lending programme will place a strong focus on targeting women-owned enterprises.

OPEC Fund Director-General Abdulhamid Alkhalifa said, "Promoting sustainable and inclusive economic growth is one of the OPEC Fund’s priorities. Our cooperation with Banco Promerica aims at accelerating the deployment of funds to El Salvadoran women entrepreneurs and SMEs, as the main drivers of jobs. Increased access to finance will help these sectors to fulfil their potential and contribute to growth and improved living conditions." The funding follows an earlier loan that the OPEC Fund extended to Banco Promerica, which supported 560 businesses active in manufacturing and services, the production of dairy products, construction and the import of goods.

OFID was established in January 1976 by the then 13 member countries of OPEC; including the United Arab Emirates. It is the development finance institution established as a channel of aid to developing countries.

© Copyright Emirates News Agency (WAM) 2021.


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