Micro, Small and Medium Enterprises (MSMEs) are essential for economic growth and development in El Salvador. However, limited access to finance restricts them from achieving their full growth potential. One of the reasons for this is that the financial sector in El Salavdor to a large degree is managed by foreign multinational corporations.
Banco Promerica El Salvador (BPES) began its operations in 1996 when it obtained a new banking license to operate in El Salvador. The bank is very focused on SMEs with 50% of its loan portfolio dedicated to this sector. It has been growing steadily and for the past seven years the bank has had an average growth of 15% per year.
Norfund’s loan to Banco Promerica El Salvador will support micro, small and mid-size businesses with much needed long term financing. Without this medium term financing from Norfund, Banco Promerica El Salvador would only be able to support the MSMEs with short term financing for their long term productive assets investments.
In addition, this loan from Norfund will support the reactivation of the El Salvador’s economy while demonstrating confidence in the financial sector.