IMF meets Salvadoran delegation in Washington

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NEW YORK, Nov 10 (Businesshala) – The International Monetary Fund said on Wednesday it is meeting in Washington this week for annual talks with a delegation from El Salvador, which the fund said will discuss a new loan program. Might be “less”.

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The Salvadoran government is looking to revive talks on a potential $1 billion loan deal. The fund has said that discussions about that agreement have been stalled since April.

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The dismissals of five Supreme Court judges and the dismissal of the top prosecutor in May soured Nayb Bukele’s government’s ties with the United States, the largest shareholder of the IMF. The US government’s anti-corruption stance in the region has also been a sticking point between the two countries.

“Growth from (April) onwards will require some re-evaluation of policies needed to ensure inclusive growth, fiscal stability and financial stability,” said Alina Carare, IMF mission chief for El Salvador.

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“The conversation will center around the policies that will outline a potential IMF program.”

The fund said the meetings began on Monday afternoon and would continue almost through the rest of November when the delegation returned to El Salvador.

The Salvadoran government did not immediately respond to requests for comment.

“The Article IV consultation process of 2021 will be completed after discussion in the Executive Board, which will take place a few months after the end of the mission,” Carrera said, referring to the IMF’s regular process for reviewing its member states.

The Salvadoran bond spread in the US Treasury rose to a record high above 1,100 basis points in late September and is currently above 1,000 bps, all but closing the country from financing markets and underscoring the importance of a deal with the IMF. expose. (Reporting by Rodrigo Campos in New York and Gerardo Arbaiza in San Salvador, Editing by Peter Graff)

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