The Inter-American Development Bank (IDB) has approved a $170 million loan to help El Salvador strengthen the economies of the Santa Tecla and La Libertad districts by improving access to quality public services and urban infrastructure. The program will focus on revitalizing municipal markets in both districts, ensuring they are universally accessible and climate-resilient, while renewing public spaces such as streets, parks, plazas, and green areas.
The initiative aims to support small-scale merchants in expanding their productive and commercial capacities and promotes the adoption of digital payment solutions. It will also enhance the institutional and financial capacities of the municipalities of Libertad Sur and Libertad Costa to better manage urban growth.
The interventions are expected to directly benefit 2,000 small-scale merchants—1,500 in Santa Tecla and 500 in La Libertad. Improved urban environments and public services will positively impact approximately 1,800 residents in Santa Tecla and 2,500 in La Libertad. Infrastructure and amenity improvements will also benefit domestic and international tourists, including the estimated 3.8 million annual visitors to La Libertad, who will enjoy safer, more orderly, and attractive spaces.
The IDB loan carries a 25-year repayment term, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).
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