An IMF team held meetings with the economic cabinet, other policymakers and private sector representatives from November 29 until December 3. The team reviewed the short-term economic prospects and macroeconomic projections are now focusing on implementing the government's fiscal program. The IMF team thanks the authorities for their excellent cooperation and productive dialogue.
"The evolution of economic variables has been broadly in line with program projections approved by the IMF Board on October first."
The team noted that successful implementation of programs is especially dependent on sustained efforts to strengthen tax collection, contain current expenditure and improve efficiency and financial performance of major state enterprises. The team supported recent measures to control liquidity, strengthen the banking system and reform public pension funds. The team also supported continuous monitoring of developments in the financial sector and recommended that authorities refrain from actions which may distort economic activity, affect confidence and prevent economic recovery.
The government's economic program for 2010-11 is supported by a combination of financial assistance of about U.S. $ 202 million through two credit loans by the IMF Stand-By Agreement (SBA) and Standby Credit Facility (SCF).
The next visit of the IMF team is scheduled for February, when performance will be evaluated until the end of December and will become the first review under such program.
"El Salvador’s financial system has weathered well the aftershocks of the global financial crisis and the uncertainties surrounding the elections, and remains liquid and well-capitalized."
A mission from the International Monetary Fund (IMF), headed by Alfred Schipke, visited San Salvador during May 18-27 to initiate discussions for the first review under the US$800 million precautionary Stand-By Arrangement, approved on January 16, 2009 (see Press Release No. 09/10). The mission had joint discussions with senior government officials and members of the incoming administration’s economic team, and also met with private sector representatives. At the conclusion of the mission, Mr. Schipke made the following statement:
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