IDB Approves $100 Million to Support Youth in El Salvador

The programme will strengthen students' academic, social and emotional skills while expanding financial support through scholarships and cash transfers.

The Inter-American Development Bank (IDB) has approved up to $100 million in financing to help vulnerable young people in El Salvador continue their education and improve their access to formal employment through a new national programme focused on academic and community integration. The loan will be complemented by $4 million in grant funding and $10 million in local counterpart financing, bringing the programme's total investment to $114 million.

The initiative, known as the Program for Academic and Community Integration of Youth, is designed to help young people from vulnerable communities overcome barriers that prevent them from completing secondary and post-secondary education while improving their chances of securing stable employment.

Thousands of young people to receive scholarships and academic support

Over the next five years, the programme is expected to benefit around 60,000 young people, including students attending public schools, young women, people with disabilities and nearly 1,000 returning migrants seeking to rebuild their lives in El Salvador.

The programme will strengthen students' academic, social and emotional skills while expanding financial support through scholarships and cash transfers. It will also improve institutional capacity to monitor students' educational progress and identify those at risk of leaving school before completing their studies.

Additional measures include enhanced academic assistance, career guidance during high school and the introduction of tracking and early warning systems designed to reduce dropout rates. These interventions are intended to help more students successfully complete their education and prepare for higher education or vocational pathways.

Investment supports long-term workforce development

Alongside expanding access to education, the programme will strengthen links between education and employment by improving opportunities for young people to enter the formal labour market. Returning migrants will also receive targeted support to help them reintegrate into education, training and employment.

The financing represents the first operation under a Conditional Credit Line for Investment Projects (CCLIP) valued at up to $300 million, which is dedicated to helping vulnerable youth continue their post-secondary education and successfully transition into formal employment.

The initiative forms part of the IDB's broader commitment to strengthening human capital development in El Salvador and supports the objectives outlined in the Bank's 2025–2029 Country Strategy. By investing in education, skills development and workforce integration, the programme seeks to create better opportunities for young people while contributing to the country's long-term social and economic development.