The Ministry of Finance is reviewing eliminating life annuities, a benefit which affects about 130 thousand people, in place thanks to a decree by the government of Elias Saca.
Elsalvador.com reports that "According to a study on pensions which the Treasury, along with other institutions, is working on, decree number 100 has cost the Government $6 billion, an amount which must be financed by Salvadoran taxpayers."
A precautionary agreement signed by the previous administration in January has been reactivated.
This was announced by President Mauricio Funes, who remarked that even though the agreement had a validity of 6 months, it had been rendered ineffective by lack of compliance with the established conditions.
Capitales.com reports: "On that occasion, the administration of former president Antonio Saca established a 2.7% fiscal deficit, which could not be achieved because of the economic crisis".
The region made a petition to the Central American Bank for Economic Integration that could reach $2 billion, that is $400 for each one of the five countries in SICA.
Central America is seeking its own financial rescue plan. After analyzing the possible effects of the financial crisis in the United States on the region, the Heads of State of the Central American Integration System (SICA) asked the BCIE "to consider the possibility of extending lines of credit for up to $200 million for the Central Banks" in the region.
After the dollarization of the economy, the cost of living grew as expensive as in Boston, in London, or in Moscow, with the exception that chaos, violence and lack of services rein here.
The crisis in El Salvador started before the rise the price of oil and world food.
Armando Flores, director of the Consumer Defense Committee (CDC), analyzes the situation on the ground in El Salvador.
President Antonio Saca of El Salvador has announced measures that will cost a total of US$65.7 million. The private sector and analysts have welcomed the announcement but are wondering where the money will come from.
A project to recapitalize state banks will cost US15 million. Social housing is to get a US$15 million boost, and state employees are to have a pay rise that will add US$35.7 million to the bill.
President Antonio Saca of El Salvador headed into his last year in office under fire from both sides of the political spectrum.
Luis Membreño, an economist, said the government had lost its way after a "sound approach" in its early years that led to the recovery of economic growth and a much-needed tax reform.
Salvador Sánchez Cerén, vice-presidential candidate of the leftist FMLN party, said some of Saca's social programs were "interesting but insufficient".
President Antonio Saca of El Salvador, under fire over his subsidies policy said he had no intention of changing it now after four years in power. Indeed, he added, he might even increase subsidies.
Several international institutions and national organizations say that Saca's indiscriminate subsidies help the middle classes more than the poor, who are the most in need.
El Salvador's GDP per inhabitant rose to US$3,574 last year, largely because the population turned out to be smaller than expected.
The nation's GDP in 2007 came to US$20.37 billion, and the population was estimated by the census at 5.7 million.
The new figure for GDP per inhabitant brings El Salvador to within US$22 of being classified as a nation of medium to high personal income.
Over the last 15 years, El Salvador's economy has become predominantly service-based, according to the national census.
Primary and secondary production no longer hold sway, the census shows. Some 37.6 percent of the nations jobs are now in services and a further 22.3 percent in commerce. Farming accounts for 16.6 percent of employment, industry 15.8 percent, and construction 7.6 percent.