Juan Pablo Durán Escobar, the chairman of Bandesal, the national development bank of El Salvador, announced on June 18, a new energy efficiency credit line highlighting that the purpose is funding technological renovation of capital equipment in SMEs, including inter alia boilers, engines, and air conditioning in order to diminish energy consumption without an adverse impact on their cashflows and financial condition. The chairman of Bandesal underscored that this new source of funding in El Salvador aims to facilitate substantive savings in SMEs operations, improving income and profits as well as a positive environmental impact.
These energy efficiency projects should not have a negative impact on the firm while costs savings may allow them to pay back their loans given the favorable interest rates of the new credit line.
Small and medium firms in El Salvador will have access to a total amount of US$ 41.7 million, including US$ 20 million provided by the Inter-American Development Bank, US$ 1.7 million allocated by the Green Climate Fund, while BANDESAL itself will supply another US$ 20 million to make its contribution to promote sustainable development in the country.
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