El Salvador Gets IDB Infusion

The IDB has approved a $400m loan to El Salvador so the sovereign may increase the availability of credit to the private sector. The loan is for 5-years, including a 3-year grace period, and priced at 6-month Libor plus 400bp. The central bank will use the funds to purchase short-term portfolio receivables for working capital and trade financing, thereby providing local financial institutions with new short-term loans for working capital and trade credits.