El Salvador Needs $400 million

Fusades estimates that the government is facing a fiscal deficit in excess of $400 million for the remainder of the year, and there is no clarity as to how it will be financed.

Wednesday, August 30, 2017

The Salvadoran Foundation for Economic and Social Development (Fusades) "... updated its estimates of funding needs for the remainder of the year. In July, it was estimated that the uncovered financial gap ranged from $537.1 million to $622.9 million."

An analyst at Fusades, Jose Andrés Oliva, explained to Elmundo.sv that "...After several movements, including the recent sale of government shares in sugar mills, the fiscal gap was reduced to about $408.6 million."

"... Fusades calculations, based on official statistics, indicate that during the second half of the year, $951.8 million in public debt needs to be paid. Some of these maturities are included in the budget, but others - such as the CIP and Letes - lack financing."

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More Spending, More Fiscal Deficit

October 2018

The budget presented by the Salvadoran government for next year will be 23% higher than in 2018 and increases to $1.613 million the gap to be financed.

The Salvadoran Foundation for Economic and Social Development (Fusades) reported that the draft National General Budget 2019 (PP2019) totals US$6,733.2 million, an increase of US$1,265.7 million (23.1%) over the voted budget 2018 and is equivalent to 24.9% of the gross domestic product (GDP) 1. This is the amount that has been budgeted for the Central Government for 2019, which shows a significant increase with respect to the 2018 voted budget and the gap to be financed is greater, since it will need financing in the order of US$1,612.5 million.

El Salvador: Banks Reduce Investment in Public Debt

September 2017

Salvadoran banks have been reducing their investments in Treasury Bills, and have stated that they will not increase them until the debt rating improves.

Representatives from the Salvadoran Banking Association (Abansa) acknowledged that since March this year the entities have been reducing their investment in 'Letras del Tesoro' (Letes), due to the delicate fiscal situation facing the government.

El Salvador: Concerns Over State's Ability to Pay

June 2016

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.

El Salvador 2014: Economic Situation IV Quarter

February 2015

In 2014 the performance of most economic indicators was worse than that of 2013, with continued deterioration in public finances.

From a statement by the Salvadoran Foundation for Economic and Social Development (FUSADES):

In 2014 the performance of most economic indicators was lower than that of 2013, when growth was 1.7%; public finances continue to deteriorate, with a balance of the NFPS debt being 60.3% of GDP at the end of 2014.

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