El Salvador will need more international loans

No matter who wins the elections, the country will need to resort to international loans to face the crisis.

Wednesday, February 11, 2009

The Central American Institute of Fiscal Studies (Icefi), will elaborate an analysis of the consequences of the financial crisis in the region, focusing on 4 of the main ways for the crisis to spread: remittances, commerce, tourism and foreign direct investment.

Elsalvador.com publishes: "Fernando Carrera, Director of the Central American Institute for Fiscal Studies (Icefi), explained that 'whoever wins the elections will need to tap international loans", to compensate with public spending and investment the expected decrease in private sector activity.
Carrera said that in the last years, growth in the economies of the region, specially Guatemala and El Salvador, has been based on private consumption, fueled by remittances, and these keep falling at an accelerated rate."

More on this topic

Region Takes Measures Against Global Crisis

February 2012

Central America and the Dominican Republic have agreed together to ensure financial liquidity, create mechanisms for monitoring risk management and financial systems, as well as taking measures against the effects of the euro zone crisis and the weakness of U.S.

Carlos Acevedo, president of the Central Reserve Bank of El Salvador, told Prensalibre.com that "we are preparing a regional financial system and shielding mechanisms."

Honduras Hopes for Reactivation of Credit

November 2009

After the political agreement, the country hopes to restore international loans and cooperation estimated at $739 million.

The financial blockage was imposed by the United States, the European Union and Venezuela, together with financial institutions such as IMF, WB, IDB and CABEI, after the political events of June 28th.

IMF Executive Board Completes First Review Under Guatemala’s Stand-By Arrangement

September 2009

The Executive Board of the International Monetary Fund today completed the first review of Guatemala’s economic performance under the 18-month Stand-By Arrangement

The arrangement, in the amount of SDR 630.6 million (about US$1 billion) was approved in April 22, 2009 (see Press Release No. 09/142).

El Salvador: New Stand-by Arrangement

September 2009

IMF and El Salvador have reached a preliminary agreement on a $800 million Stand-By Arrengement.

The new program will replace the 15-month Stand-By Arrangement approved on January 16, 2009 (see Press Release No. 09/10)

The agreement reached with the authorities is subject to approval by the IMF management and Executive Board, which could consider the request for the new Stand-By Arrangement in November.

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