El Salvador
Financing for Development in El Salvador
Confronting Debt Challenges
El Salvador is the smallest country in Central America. It has a limited natural resource base. About 60% of the population live in rural areas and over 80% of agricultural producers work farms of less than 3 ha. With social indicators among the worst in Latin America and a per capita income of U.S.$1,580 in 1995, it also ranks as one of the poorer countries in the region.
Since 1992, the World Bank has supported the government of El Salvador's strategic effort to consolidate peace and place the country on a path towards sustainable development. Currently, eight loans are under implementation worth a total of U.S.$298 million.
In December 2001, the World Bank announced the new assistance strategy up to $270 million to El Salvador over the next three years. This includes a $142.6 million Earthquake Emergency Reconstruction and Health Services Extension Project. The loan carried a seven-year maturity with five years grace.
Like in all poor countries, debt has become a serious problem for El Salvador. It is not the only problem but, as long as it exists, peoples and their governments will find it exceedingly difficult to...
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