The Inter-American Development Bank (IDB) is set to loan US$ 20m to El Salvador to enable investment in renewables and energy efficiency for small and medium enterprises (SMEs).
The loan program will be complemented by a non-reimbursable technical cooperation of US $ 1.7 million aimed at developing energy savings measurements and financial risk transfer instruments to promote the structuring of investments in technical and financially sound energy efficiency.
For El Salvador, the loan will provide SMEs with access to long-term credit, which is an essential part of investing in energy efficiency. IDB estimates the credit line could support up to nearly 500 SMEs.
