WASHINGTON, D.C., March 31, 2026 - The World Bank Group's Board of Executive Directors approved today financing to support El Salvador in expanding credit access for Micro, Small and Medium enterprises (MSMEs), with the aim of strengthening job creation and promoting more inclusive and sustainable economic growth.
The Enhanced Financial Intermediation for Jobs Project will advance MSMEs access to financing in sectors with high job-creation potential, such as tourism. Approximately 5,000 MSMEs are expected to receive loans, contributing to the creation of 8,300 new or improved jobs, of which nearly 30 percent would benefit women.
"This collaboration represents concrete support for expanding credit access to MSMEs, which serve as an engine of employment and growth," said Jerson Posada, El Salvador's Minister of Finance. "Strengthening their capacity is key to enabling them to expand, formalize, and create quality jobs."
The operation, to be implemented by the Development Bank of the Republic of El Salvador (BANDESAL), will strengthen financial intermediation through a line of credit enabling more MSMEs to access longer-term loans. It will also include a partial credit guarantee facility to reduce risk and promote better integration of the sector into global value chains to achieve greater productivity.
The project will facilitate complementary private capital mobilization, building on the support that the International Finance Corporation, the World Bank Group's private sector arm, drives in the areas of financial inclusion and productive expansion for formal job creation.
"We reaffirm our commitment to working with the public and private sectors to advance business development that generates more and better jobs," said Carine Clert, World Bank Country Manager for El Salvador and Costa Rica. "This effort seeks to invigorate El Salvador's economy through an integrated approach to credit access for micro, small, and medium enterprises."
The project is financed by US$100 million from the International Bank for Reconstruction and Development (IBRD), extended to BANDESAL with sovereign guarantee, and will be implemented over a five-year period.
All the information about the project can be found here.
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