OPEC Fund approves $135 million via fast-track process for El Salvador, Mozambique and Pakistan – El Salvador

Vienna, Austria, October 30, 2020. The OPEC Fund for International Development (the OPEC Fund) has approved public sector loans of $35 million and $50 million to support COVID-19 response efforts in El Salvador and Pakistan, respectively. A $50 million loan to the private sector was also approved to help improve access to energy in Mozambique. All loans were approved through the OPEC Fund’s fast-track process, adopted to ensure that funding reaches those who need it most, quickly and efficiently.

The loan to El Salvador will benefit approximately 6,000 micro, small and medium-sized enterprises (MSMEs). This bolsters the El Salvadoran government’s special trust fund, channeled through the National Development Bank of El-Salvador (BANDESAL), to provide support that includes grant programs for MSME employees, loans to small and medium-sized enterprises (SMEs) and a financing program for entrepreneurs as well as micro and small traders in the informal sector. The Inter-American Development Bank, the World Bank and the Central American Bank for Economic Integration are also co-financing the program.

A US$50 million loan to Pakistan will help fund the government’s program to strengthen health infrastructure and social safety nets and provide countercyclical fiscal stimulus. This will include the provision of COVID-19 test kits and protective equipment, cash assistance to 12 million families and daily workers in the industrial sector who have lost their jobs, the purchase of 8.2 million tonnes of wheat, subsidies to agricultural enterprises and SMEs, and financing for industry and exporters. Co-financiers include the Asian Development Bank, Asian Infrastructure Investment Bank, International Monetary Fund, World Bank and bilateral donors.

Under its Private Sector and Trade Finance Facility, the OPEC Fund has also approved a $50 million loan to help boost energy access in Mozambique.

About the OPEC Fund

The OPEC Fund for International Development (the OPEC Fund) works cooperatively with developing country partners and the international development community to drive economic growth and social progress in low- and middle-income countries around the world. The organization was established by OPEC member countries in 1976 with a distinct mandate: to drive development, strengthen communities and empower people. The work of the OPEC Fund is people-centred, focusing on financing projects that meet basic needs, such as food, energy, infrastructure, employment (especially regarding MSMEs), drinking water and sanitation, health care and education. Our vision is a world where sustainable development is a reality for all.

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