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Overview

China Co-Financing Fund for Latin America and the Caribbean provides $12.5 million loan to Banco Cuscatlán for on-lending to SMEs (Linked to Record ID#86526)

Commitments (Constant USD, 2023)$12,896,673
Commitment Year•2020Country of Activity•El SalvadorDirect Recipient Country of Incorporation•El SalvadorSector•Other MultisectorFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 22, 2020
Last repayment (originally scheduled)
Jun 21, 2025

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • People's Bank of China (PBC)

Cofinancing agencies

Intergovernmental Organizations

  • IDB Invest (formerly Inter-American Investment Corporation or IIC)

Receiving agencies

Private Sector

  • Banco Cuscatlán

Implementing agencies

Intergovernmental Organizations

  • China Co-Financing Fund for Latin America and the Caribbean (CHC)
  • Inter-American Development Bank

Private Sector

  • Banco Cuscatlán

Loan description

China Co-Financing Fund for Latin America and the Caribbean provides $12.5 million loan to Banco Cuscatlán for on-lending to SMEs

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

On June 22, 2020, IDB Invest, a member of the Inter-American Development Bank (IDB) Group, loaned USD 12.5 million to Banco Cuscatlán of El Salvador, drawn from the China Co-Financing Fund for Latin America and the Caribbean. IDB Invest loaned Banco Cuscatlan USD 25 million from their own resources, for a total of 37.5 million USD. IDB also provided USD 470,000 in technical assistance for the digitalization of SME's owned by women. These loans carried a five year maturity period, and the other loan terms are currently unknown. The financing is intended for on-lending to Banco Cuscatlán's small and medium-sized enterprise (SME) clients, in order to provide them stable, medium-term resources. The China Co-Financing Fund is funded by the Chinese government and administered by the IDB.

Staff comments

1. The China Co-Financing Fund for Latin America and the Caribbean was established on January 14, 2013 with a contribution of $2 billion by the People's Bank of China. It is administered by the IDB. For more information, see umbrella Record ID#86526. 2. AidData has coded this loan's Flow Class as vague since the concessionality is currently unknown.