IFC Supports BAC to Boost MSMEs and Create Jobs in El Salvador

San Salvador, March 20, 2025 – The International Finance Corporation (IFC), a member of the World Bank Group, announced a loan of $120 million to BAC El Salvador, one of the leading financial institutions in the Central American country, aimed at strengthening access to credit for micro, small, and medium enterprises (MSMEs) and creating jobs.

IFC’s financing package, which includes a long-term loan of $80 million and a trade line of $40 million, will allow BAC to expand its MSME loan portfolio, with a focus on women-led SMEs, a segment traditionally underserved by commercial banks.

Additionally, the agreement—built on an active advisory project to promote energy solutions in the SME sector—will drive initiatives for green buildings and ecotourism, a sector identified as a priority by El Salvador’s government.

"We are grateful for this partnership with IFC, which allows us to continue driving sustainable economic development in El Salvador. Through this collaboration, we keep up laying the foundation for inclusive and lasting growth that benefits all micro, small, and medium enterprises," said Fernando González, President of BAC El Salvador.

"Strengthening El Salvador's business ecosystem is key to creating jobs, driving economic growth, and advancing sustainable development," said Makhtar Diop, IFC’s Managing Director. "This agreement underscores our commitment to supporting MSME growth and fostering innovative financial solutions that tackle critical development challenges by generating employment opportunities," he added.

MSMEs represent 95 percent of all firms in El Salvador and generate over 700,000 direct jobs, according to figures from El Salvador-based Observatorio MYPE. Despite their dynamism, access to financing remains a challenge due to the limited credit history of many MSMEs, coupled with information asymmetries and the perception of risk by commercial banks. As a result, 27.5 percent of small firms face significant hurdles in obtaining the financing they need to operate and expand. Additionally, in El Salvador, businesses owned by women have 16 percent less access to financial services compared to those owned by men.

IFC’s portfolio in El Salvador stands at $620 million, expanding financial inclusion, with a focus on supporting MSMEs, and driving investments to enhance productivity and resilience.

About BAC El Salvador

BAC is the leading bank in Central America, present in all six countries in the region. It has more than 4.9 million customers, more than 20,000 employees in the region, and serves more than 100,000 businesses. BAC's purpose is to "Reimagine banking to generate prosperity in the communities it serves." Guided by the values ​​of integrity, excellence, and passion, it aims to be a pioneer and demonstrate that banking can maximize economic, environmental, and social value, all at the same time and with the same rigor and excellence. For more information, visit www.baccredomatic.com.

In 2024, BAC El Salvador received several prestigious awards, including "Impact Company 2024" from Derecho y Negocio magazine; "Best Bank" from the Top Customer Experience 2024 study by Marketing Plus; "Most Sustainable Bank in El Salvador"; and "Leader in Digital Transformation" from Summa magazine. Additionally, it earned 2nd place among the most beloved companies in the “Love Marks 2024” ranking by Estrategia y Negocio magazine.