IMF Mission Concludes Visit to El Salvador | WPN World People News

● IMF team visited El Salvador to assess the political support for a potential IMF backed economic reform program

● There was strong support for a potential program, despite differences regarding measures underpinning fiscal adjustment

● There was consensus that a program would help catalyze support for fiscal adjustment while protecting the most vulnerable

At the invitation of the Salvadoran authorities, an International Monetary Fund (IMF) team, led by Mr. Daniel Kanda, visited San Salvador from December 14 to 20, 2016 to assess the political support of the authorities and the parliamentary opposition for a policy agenda consistent with the recommendations of the 2016 Article IV Staff Report. At the conclusion of the visit, Mr. Kanda issued the following statement:

“Government officials, members of congress across the political spectrum, and private sector representatives expressed strong support for a potential Fund backed economic reform program, despite differences regarding the mix of revenue and expenditure measures that could underpin the needed fiscal adjustment. There was a shared understanding that a Fund program would help catalyze agreement on a much needed policy package that would support fiscal adjustment while protecting the most vulnerable, boost financial sector soundness, and help establish conditions conducive for higher and more inclusive economic growth. The government continues to make progress on the technical preparations that would underpin this policy agenda.

“The team stressed the need for high-quality fiscal measures and higher transparency in government and public enterprises, complemented by policies aimed at boosting the resilience of the financial sector, creating a more attractive climate for investment and jobs, and strengthening the social safety net to protect the poor.

"The IMF team looks forward to continuing its engagement with all relevant stakeholders in the period ahead and greatly appreciates the frank and productive discussions and the warm hospitality of our Salvadoran counterparts.”

The mission met with Vice-President Oscar Ortiz, Technical Secretary Roberto Lorenzana, Finance Minister Carlos Cáceres, Economy Minister Tharsis Solomon López, Minister of Health Violeta Menjivar, Central Bank President Oscar Cabrera, Leader of ARENA party Mauricio Interiano, as well as other senior government officials, members of congress from both major parties, and representatives of the private sector.

Source: International Monetary Fund