A. M. President Nayib Bukele announced that, thanks to an agreement with the International Monetary Fund (IMF), the Government of El Salvador will inject US$1 billion (equivalent to 2.8% of GDP) in additional liquidity into the national economy in the coming days. This measure seeks to boost the economy in the short term and strengthen the domestic market.
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The funds will be channeled through advance payments to micro, small and medium-sized enterprises, advances to suppliers and repayment of domestic loans. This is intended to alleviate financial pressure on the productive sector and stimulate its operating and investment capacity.
The President clarified that this injection does not come from local monetary issuance, but from foreign currency already existing in international markets. Therefore, the Government assures that there will be no inflationary impact, which protects the purchasing power of the population and price stability.
The strategy is aimed at boosting consumption, promoting sales in the commercial sector and fostering economic movement without compromising the country’s macroeconomic stability. This stimulus is expected to especially benefit small businesses, which form a key part of the national productive fabric. With this initiative, the government seeks to take advantage of international cooperation to strengthen economic growth, sustain the post-pandemic recovery and continue building favorable conditions for investment and employment.
