In early December, the government will begin negotiations for a potential $300 million agreement.
The Finance Minister, Alfredo del Cid, said that “that agreement will set parameters to control the fiscal deficit, which will be 2.8 percent this year and between 3 percent and 3.2 percent in 2011".
Guatemala has requested to date four Stand-By agreements, from 1992 to 94, 2002 to 03, 2003 to 04 and the last from 2009 to 2010.
The Executive Board of the International Monetary Fund (IMF) has concluded the first review of El Salvador’s performance under its 36-month Stand-by Arrangement.
he main objectives of El Salvador’s economic program under the arrangement are to bolster economic recovery, reduce poverty, preserve financial stability, and secure debt sustainability. The Stand-By Arrangement was approved on March 17, 2010 in the amount equivalent to SDR 513.9 million (about US$781 million). The Salvadoran authorities intend to continue treating the arrangement as precautionary.
The agreement, which expires in March 2012, will enable the country to get immediate access to funds worth $196 million.
An International Monetary Fund (IMF) staff mission was in Tegucigalpa between 7 and 10 September to continue discussions on an agreement between Honduras and the IMF to support the government's economic program. At the close, the mission's chief, Mr. Przemek Gajdeczka, issued the following statement:
Gradual increase in exchange rate flexibility, supported by fiscal consolidation, wage moderation, and a prudent monetary policy.
On July 12, 2010, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Honduras.
Background
Even though a benign external environment, spikes in foreign direct investment and remittances inflows, and substantial debt relief contributed to episodes of high growth in Honduras over the past decade, the country remains one of the poorest countries in Central America with limited progress in establishing conditions for sustained long-term growth. In part, these outturns may be explained by the fact that many successful economic reforms undertaken in the first half of the 2000s, which justified the completion of the Highly Indebted Poor Countries and Multilateral Debt Relief Initiative programs by the international community, were abandoned or even reversed in the latter part of the decade.
The coming Tuesday Honduras will receive an IMF technical mission to negotiate the new economic program.
The team will be headed up by Przemek Gajdeczka, who also led the group that came in March for the Article IV consultation. Polish Gajdeczka will come with five subject area experts, especially in fiscal policy, which is what the Porfirio Lobo Sosa government is particularly struggling with.
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 International Monetary Fund recommended the country’s Central Bank to accelerate the transition to an inflation targets system and implement greater flexibility in the currency exchange rate.
The Executive Board of the International Monetary Fund (IMF) completed on May 28, 2010 the third and final review of Costa Rica’s economic performance under a program supported by a 15-month Stand-By Arrangement (SBA) approved on April 10, 2009 (see Press Release 09/124). The authorities have indicated that they will continue to treat the arrangement as precautionary.
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.
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 economic recovery in Costa Rica is firmly underway. Economic growth rose in the second half of 2009 and remained strong in the first quarter of 2010.
Consumer and business sentiment have firmed up and financial conditions have continued to improve. Adjustments in administered prices have pushed inflation to 5.8 percent in March, compared to 4 percent at end-2009, but underlying inflation has remained stable close to 4 percent.
The IMF mission that visited Honduras during May 13-21, 2008 discussed policy responses to the weakening external conditions.
The mission agreed that full implementation of the policies set out in the authorities' program would be key to help the economy adjust smoothly to the emerging risks from the external shock, especially on fuel prices. The mission supported the authorities' commitment to achieving the fiscal deficit target (1½ percent of GDP), with steps to strengthen the finances of ENEE, redirect spending to protect the poor, and improve public investment execution.
The IMF mission that visited Honduras during May 13-21, 2008 discussed policy responses to the weakening external conditions.
The mission agreed that full implementation of the policies set out in the authorities' program would be key to help the economy adjust smoothly to the emerging risks from the external shock, especially on fuel prices. The mission supported the authorities' commitment to achieving the fiscal deficit target (1½ percent of GDP), with steps to strengthen the finances of ENEE, redirect spending to protect the poor, and improve public investment execution.