El Salvador Reactivates $800 Million IMF Agreement

©image: AComment

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".

Source: Capitales.com

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January 2010

The Central Bank finished 2009 with $2.11 billion in reserves, 14% less than in 2008.

In 2009, the bank lost $343.7 million worth of reserves when compared to 2008. The current reserves cover 3.4 months of imports, slightly above the accepted minimum of 3 months.

"Sandra Martínez de Midence, Central Bank president, reported that this reduction can be explained by internal and external reasons, such as a reduction in remittances, the suspension of international aid and less exports", reported Elheraldo.hn.

$150 Million from IMF to Honduras

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$243 Million from IMF for Guatemala

September 2009

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The elimination of the electricity subsidy payments, which affects those who consume in excess of 99 kilowatts, was a decision that was forced upon the Salvadoran government by the decline in revenues in the face of the economic downturn affecting the country.