The World Bank approved a $100 million loan to Chile on Tuesday, that will mainly enhance the equity of access to education and social programs. The fund has a 13-year maturity period and 12.5-year grace period.
It will fall under the “Social Inclusion for Shared Prosperity Development Policy Financing Project” that will help low-income students go to school and grant high school scholarships to students that are part of the most vulnerable 50 percent of the population.
“This initiative is part of the actions carried out jointly by the Government of Chile and the World Bank, which include both financial support and technical assistance to promote public policies that strengthen equity in education and improvements in the use of resources for social programs,” Chilean finance minister Rodrigo Valdes said in a statement.
According to an official release, the project will focus on promoting equal opportunities in education, improving conditions to increase the quality of tertiary education. It will also enhance poverty-measuring institutions and improve targeting of social programs, which in turn will establish the new social selection support system. This will help identify the poorest and most vulnerable populations.
“This loan will support the Government of Chile in its objective of reducing inequality through the implementation of structural reforms that will help achieve a more integrated society with equal opportunities for all,” said Alberto Rodriguez, World Bank Director for Bolivia, Chile, Ecuador, Peru and Venezuela.
Chile’s Finance, Education, and Social Development ministries will organize the project’s activities.