El Salvador: Call for Fiscal Responsibility

Businessmen are asking for "... the establishment of concrete commitments and legal limits on the financial debts that the government may take out in the name of all Salvadorans."

Monday, April 27, 2015

From a statement issued by the Chamber of Commerce and Industry in El Salvador:

Approval of new issues of government bonds are not the solution to the problem of the government's lack resources, until there is a Fiscal Responsibility Law to address comprehensively the problem of sustainability of public finances, there is no guarantee that the government will not continue acquiring more debt which is not translated into improvements in the areas of security, education, health, infrastructure and other essential services for the population.

We believe it necessary to establish specific commitments and legal limits on the financial obligations that the government may acquire on behalf of all Salvadorans, otherwise we will not succeed in stopping the spiral of public indebtedness that exacerbates the imbalance of state finances and slows the ability of the economy to grow.

¿Busca soluciones de inteligencia comercial para su empresa?

More on this topic

Guatemala: Public Debt Exceeds 23% of GDP

October 2018

Up to August, the external and internal public debt amounted to $18.463 billion, equivalent to 23.4% of the country's Gross Domestic Product.

According to figures from the Ministry of Public Finance, in the last nine years the debt to GDP ratio has slightly varied, between 23.3% and 24.8%.

El Salvador: $350 million to Cover Fiscal Deficit

June 2018

El Salvador's Congress approved an IDB loan of $350 million to finance the government budget deficit at a 3.25% rate.

The president of the Legislative Assembly, Norman Quijano, stated that " ..." with the conditions offered by the IDB we will have an interest rate estimated at 3.25%, with the bonds we had an average rate of 7 and 8%, the reduction of interests will mean a saving of tens of millions of dollars for the country.' "

Honduras: Public Debt Stands at 41% of GDP

October 2014

Between January and September this year, the amount of state debt increased by 7.7% compared to the same period in 2013, raising the total amount to $5.065 billion.

Of the total debt, 64% was purchased with multilateral financial loans, 21% with private creditors and 11% with bilateral organizations, says a report by the Ministry of Finance of Honduras.

El Salvador: Businesses Demand Fiscal Responsibility Law

June 2014

The private sector demands limits on the government's ability to borrow, through means of a Fiscal Responsibility Law.

From a press release issued by the Chamber of Commerce and Industry of El Salvador (Camarasal):

The Camarasal has expressed dissatisfaction with the fact that the Legislature has authorized the government to issue a new bond debt for $1.156 million, without having first limited the state's debt capacity through the adoption of a Fiscal Responsibility Law.