Oyogist has learned that the government of El Salvador has planned to provide US$10 million in crypto loans for small local businesses.
The program is set to kick-start in the first quarter of 2022 and will be initiated through Acumen, a Solana-based lending platform.
According to Conamype (A Government firm that plans to distribute the funds to local establishments) the firm will provide U.S. dollars to El Salvador’s National Council of Small and Micro Enterprises.
Acumen’s project manager, Andrea Gómez, said that the company’s interest rate for loans will be 6% to 7% per annum, although it could be as high as 10%.
According to Steiner, 86% of companies in El Salvador operate in the informal sector and do not have access to banking services. Of this percentage, 98% rely on unregistered lenders to provide loans with an average annual interest rate of 2,300%
