The Executive Board of IMF on June 16 concluded the third review of Guatemala’s economic performance under a program supported by an 18-month Stand-By Arrangement (SBA).
The Guatemalan authorities intend to continue treating the arrangement as precautionary.
The arrangement, in the amount equivalent to SDR 630.6 million (about US$927.2 million) was approved on April 22, 2009 (see Press Release No.
The Executive Board of the International Monetary Fund will decide no earlier than July.
An IMF mission conducted discussions on the 2010 Article IV consultation with Honduras during May 17-27. The mission met with President Porfirio Lobo, the government’s economic team, as well as private sector and civil society representatives.
Discussions focused on the economic outlook for 2010 and the macroeconomic policy response of the government.
The money will be invested in eight areas, including electric energy and education.
Pablo Tabilo, from the Inter-American Development Bank in Honduras, explained that they will use the funds to support 30 projects from various government institutions.
“Most of the projects and technical cooperation programs by the Inter-American Development bank are financed through loans, either with market rates or though concessional resources, and follow standard terms and conditions”, reported Elheraldo.hn.
Finance Minister William Chong Wong affirmed they will be completely transparent when the International Monetary Fund reviews Honduras’ accounts.
The previous IMF visit to review national accounts, a compulsory process for all member states, was conducted in Honduras back in 2009, when Manuel Zelaya was still president. According to Proceso.hn, the mission “reviewed the numbers and found imbalances in public spending, mismanagement of state companies and noncompliance with the agreement signed with the Fund”.
The Government of Costa Rica has failed to comply with specified spending deadlines in 60% of its contracted loans.
On December 2009, the government had $1.14 billion in outstanding loans from foreign debtors, with $734 million pending execution.
In an attempt to correct the situation, the Comptroller of the Republic asked the Treasury Ministry to instruct the Public Credit Directorate to implement controls over the next 8 months to solve each particular case. The Comptroller also requested an analysis on the consequences of these delays and which corrective measures can be taken.
On May, the board of the IMF could approve it and disburse $18 million, out of $35.6 pledged for 2010.
Antenor Rosales, president of the Central Bank of Nicaragua, stated that the Government successfully passed the fourth revision of its macroeconomic program with the International Monetary Fund (IMF), known as Extended Credit Facility (ECF).
Rosales explained he will soon sing the Letter of Intent, which describes the policies and actions that the government will assume with the IMF to reach a level of economic growth of 2% per year.
The Treasury Ministry of El Salvador requested the Legislative Assembly to approve six loans for $531 million with international organizations.
From the total, $200 million are with the Inter-American Development Bank (IDB), $161.7 million with the Central American Bank for Economic Integration (CABEI) and $170 million with the World Bank (WB).
“They would be spent in projects such as the Maternity Hospital ($40 million), risk mitigation plans ($31 million) and concluding Diego de Holguín highway ($18.3). WB had offered $500 million, but the Treasury opted to negotiate only $200 million”, reported Elsalvador.com.
Panama has complied with all the requirements to become a full member of the Andean Development Corporation (CAF).
The country was member of CAF as Series C shareholder, with limited access to products and services.
“Panama’s Legislative approved on March 3 a constitutive agreement with CAF, which incorporates the country as a full member. With this status, Panama is entitled to up to 15% of CAF’s loan portfolio, around $1.8 billion”, reported Americaeconomica.com.
From March 15 to 25, the International Monetary Fund (IMF), will evaluate the country’s economy in the wake of 2009’s political crisis.
After this assessment, the IMF may reach an agreement with the Government for a loan or some sort of cooperation, explained María Elena Mondragón, president of the Central Bank.
“The official remarked that a new agreement with the IMF would be in line with the Government Plan proposed by President Porfirio Lobo, with ‘coherent’ proposals”.
The IMF has recognized the government led by Porfirio Lobo Sosa, assured María Elena Mondragón, president of the Central Bank of Honduras.
Mondragón explained she received an official communication on behalf of the IMF, naming her the representative before the institution, and Finance Minister William Chong Wong as alternate representative.
“Honduras negotiated its last ‘stand by’ program in February 2008, which lasted for one year (it expired on March 2009). However, the Honduran economic and political crisis caused the IMF to suspend $120 million in cooperation”, reported Laprensa.hn.
Should the country receive a positive grade, IMF would disburse $17.8 million out of the $35.6 million it has earmarked for Nicaragua in 2010.
Antenor Rosales, president of the Central Bank of Nicaragua, told local media that the International Monetary Fund will review the situation of the nation’s economy.
Rosales commented that this revision will include quantitative goals, energy rates, status of the Social Security Institute, a reform to the Central Bank law, budget reforms and the 2010 budget.
The fiscal strengthening program seeks to increase the Salvadoran treasury’s balance and protect those resources earmarked for social programs.
It will be implemented by the Salvadoran Treasury Ministry over the next two years, and is composed of various elements, among them macroeconomic stability, tax reform, greater efficiency in tax and customs management and better use of subsidies.
Loans totaling $15 Million will support startup of program to deliver services to urban children below age six
The Inter-American Development Bank has granted Nicaragua two loans of $7.5 million each to finance a social welfare program for children under six years of age who live in extreme poverty in the nation’s cities.
The program’s goal is to improve living conditions for preschool-age urban children, alleviating the deprivations they face in nutrition, health and stimulation. The program will offer more services for young children in poor neighborhoods while also seeking to improve the quality and sustainability of these services.