The Inter-American Development Bank today announced the approval of $6,764,000 in financing to strengthen the technical capacity of El Salvador´s supervisory agencies for the financial sector.
A $2,962,000 grant from the Multilateral Investment Fund, an independent fund administered by the IDB, will finance the introduction of international accounting principles in the financial sector, the establishment of the Deposition Insurance Institution, and the strengthening of the Financial System Superintendency, the Securities Exchange Superintendency, and the Pension Superintendency.
MIF resources will also be used to finance the implementation of a planning and monitoring system, human resources management, the strengthening management of the technological platform, and a training program for commercial judges and arbitrators.
Resources from a $3.8 million IDB loan will be used to develop a short- and medium-term technology strategy and investment plan for the three superintendencies and to carry out the investment plan for the modernization of technological resources.
The IDB loan is for a 20-year term, with a four-year grace period, at the annual interest rate, now 6.98 percent. Local counterpart funds total $3,178,300.
The project will be carried out by the Comisión Presidencial para la Modernización del Sector Público,* with the participation of the beneficiary agencies.