Active Development AidData Chinese Aid

MOU Signed between China Development Bank and Banco Central de reserve de El Salvador (Linked to Record ID#71057)

Funder	China Development Bank (CDB)
Recipient Organization	Banco Central de Reserva de El Salvador (BCR)
Country	El Salvador
Start Date	Jan 01, 2018
End Date	Jun 22, 2026
Duration	3,094 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`70958`

Grant Description

On November 1, 2018 the Banco Central de Reserva de El Salvador (BCR) and the China Development Bank (CDB) signed a Memorandum of Understanding to promote and maintain monetary conditions, exchange, credit and financial terms.

The MOU ensured that CDB and BCR will explore avenues of cooperation by utilizing liquidity and working capital facilities.

The MOU included an article regarding the exchange of information in areas including, but not limited to, macro and microeconomic information, financial information pertaining to each party, etc.

Both parties will develop bilateral cooperation that includes, among others, credit facilities for liquidity and working capital that both parties agree upon. The head of BCR said that it has not been decided yet whether the facility would be disbursed in USD or in RMB. This MOU is one of 13 cooperation agreements that were signed between El Salvador and China in 2018.

It is Linked to Record ID#71057 because that is the umbrella project for all of the agreements.

📋 Staff Comments

The 'Markit' article confirms that the agreement gave access to a line of credit, but the balance could not be found. Staff exchanges, frequent visits and channels of communication, as well as confidentiality were also outlined in the MOU. The MOU attached is a PDF.

📚 Sources & References

Expanding Chinese infrastructure and trade investments in Central America increase labour strike risks
US aid cuts unlikely
Central America media highlights 13 November 2018
Memorándum de entendimiento entre Banco Central de Reserva de El Salvador y China Development Bank
Overview of Sino-El Salvador
Estamos tratando de diversificar la canasta de monedas Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.