The project consists of a medium-term IIC loan for up to US$5 million to Banco Hipotecario. Banco Hipotecario will use the loan proceeds to finance the expansion of its portfolio of loans to small and medium-sized enterprises (SMEs) by providing medium-term loans to eligible clients, pursuant to criteria established by the IIC.
Banco Hipotecario is the leading first-tier state-owned bank in El Salvador. It focuses on meeting the financing needs of Salvadoran SMEs in several economic sectors, offering services throughout the country.
Environmental and Labor Issues:
This is a category III project according to the IIC’s environmental and labor review procedure because it could produce certain effects that may be avoided or mitigated by following generally recognized performance standards, guidelines, or design criteria. To better understand the IIC’s requirements, Banco Hipotecario de El Salvador, S.A. shall be required to attend the IIC environmental training workshop for financial intermediaries. Each subproject will be subject to an environmental review and must comply with domestic environmental and labor laws, regulations, and standards, as well as IIC environmental guidelines.