El Salvador; Request for a Stand-By Arrangement and Cancellation of Current Arrangement: Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for El Salvador
International Monetary Fund
Fiscal policy;Economic indicators;Banking sector;Bank supervision;Bank resolution;Announcements;Dollarization;Fiscal reforms;Monetary policy;Staff Reports;Performance criteria modifications;Tax administration;Stand-by arrangement reviews;Stand-by arrangement cancellations;debt, public sector, interest, central bank, financial system
This paper discusses El Salvador’s Request for a Stand-By Arrangement and cancellation of the current arrangement. The program seeks to preserve financial stability, safeguard the economic recovery, and strengthen the medium-term fiscal position. Fiscal policy will aim at offsetting the impact of the adverse external environment on domestic activity and the most vulnerable while ensuring debt sustainability over the medium term. IMF financial support would have a catalytic role for official creditors and private investors. It would also provide a liquidity buffer to help absorb any potential shocks to the financial system.