El Salvador lands more IDB funding

El Salvador lands more IDB funding

Loans Coronavirus Debt Economy & Policy Politics El Salvador Central America

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The Inter-American Development Bank said Tuesday that it granted a $250 million loan for El Salvador "to address the health and economic crisis caused by COVID-19."

The Salvadoran government will use the money for cash transfers to low-income earners and provide liquidity to cash-strapped companies, IDB said in a press release.

El Salvador's Finance Ministry said in a statement that the 20-year loan carries an interest rate of 2.11% per year.

The new loan adds to a seven-year facility for $250 million that IDB provided to El Salvador last month at a rate of 115 basis points over Libor.