El Salvador Gets IDB Loan

The IDB has approved a $200m loan to El Salvador to finance a program aimed at improving public finances. The loan is structured in 2 tranches, each representing 50% of the total financing, subject to verification that steps have been taken to increase revenues, improve administration, boost the efficiency and equity of subsidies, and encourage transparency in fiscal management. It will be disbursed in 24 months and has an amortization period of 20 years, a 5-year grace period and an interest rate based on Libor.