The government looks like it will be unable to cope with its obligations in the second half of the year, because "there is no money to make it to the end of the year."
Figures from the Salvadoran Foundation for Economic Development (Fusades) indicate that the current balance of government debt (Treasury bills) now exceeds $900 million, and to meet its obligations in the second half of the year $500 million more is needed, which will have also have to be borrowed.
The sum of growing state debt, increasing insecurity and lack of government actions aimed at recovering real production, is creating a perfect storm.
"... The Salvadoran Foundation for Economic and Social Development (FUSADES) said the country could be entering into a severe financial political and social crisis, if a stop is not put to the uncontrollable debt levels, and if the engines of economic growth keep being smothered. "
Academics and politicians are proposing an intersectoral agreement from which comprehensive tax reforms can arise in order to make public finances sustainable.
According to an article in Elmundo.com.sv, "The forum called 'Are Public Finances sustainable?', brings together economists and two deputies from the Special Committee on Finance and Budget of the Legislative Assembly to discuss and present their proposals for solutions to the current fiscal situation.