March 21, 2025
El Salvador will advance on key reforms aimed at promoting macroeconomic and fiscal sustainability with a $500 million loan from the Inter-American Development Bank (IDB).
The IDB loan, known as special development lending, will offer budgetary support as El Salvador implements structural reforms following an agreement with the International Monetary Fund in February to restore fiscal sustainability to boost growth and resilience.
The IDB financing approved by the IDB Board of Directors will provide the country with the fiscal space to advance on reforms to increase tax revenue, reduce public debt, rebuild international reserves and improve financial governance and integrity.
This latest IDB operation is part of a series of initiatives approved since 2016 to support policy reforms and institutional strengthening in El Salvador. These initiatives include projects to enhance tax and customs administration and measures to mitigate the economic and social impacts of the COVID-19 pandemic.
The IDB loan has a seven-year maturity, a three-year grace period and an interest rate based on SOFR.