The proceeds of this loan will be used to provide financing to small and medium-sized enterprises in El Salvador through loans for working capital and the modernization and/or growth of these enterprises, based on eligibility criteria to be established by the IIC.
Environmental and Labor Issues:
This is a category FI-3 project according to the IIC’s Environmental and Social Sustainability Policy because the subprojects in the financial intermediary’s current or future portfolio are considered low risk. In order to improve the evaluation of the labor and environmental aspects of its operations, Pentágono will be required to attend the IIC’s environmental training workshop for financial intermediaries and develop a sustainable management system that includes a policy and procedures for evaluating its clients from an environmental standpoint.
Eligible Enterprises financed with IIC funds will be subject to an environmental review and must comply with national environmental and labor laws, regulations, and standards, as well as IIC environmental guidelines. Pentágono must also submit annual environmental reports to the IIC indicating the progress made and problems encountered in the implementation of these practices.