IMF Board Approves $790M
Precautionary Loan For El Salvador
WASHINGTON (Dow Jones)-The International
Monetary Fund's executive board Wednesday
approved a $790 million stand-by arrangement
for El Salvador, a precautionary loan to
replace one that is expiring.
The three-month agreement is aimed at
helping the Central American country deal
with the aftermath of the global crisis,
which sapped inflows from trade and
remittances.
The fund-sponsored program will seek to
boost domestic demand with countercyclical
measures this year, including modernizing
roads and increasing electricity output, the
IMF said in a statement.
The IMF also said it hopes the deal will
bolster investor confidence in the
government's ability to ensure fiscal and
debt sustainability.
"The authorities' fund-supported economic
program is appropriately underpinned by the
strategy of continuing to support domestic
demand in 2010, while safeguarding debt
sustainability through a medium-term fiscal
consolidation plan," said Murilo Portugal,
deputy managing director and acting chair of
the board. |
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