A. M. The Ministry of Finance will receive a budgetary reinforcement of up to US$250 million, following the approval of a favorable opinion by the Legislative Assembly’s Finance Committee, to reform the 2025 National Budget Law.
Source of Funds
The funds come from a loan previously signed with the International Bank for Reconstruction and Development (IBRD), authorized by the legislators on august 13 and ratified on september 3. The main objective of the loan is to support public policies aimed at fiscal sustainability and strengthening state finances.
Purpose and Legal Framework
During a meeting with legislators, Marlon Herrera, Director General of Investment and Public Credit at the Ministry of Finance, explained that this process will ensure the legal and timely use of the loan proceeds, in addition to providing coverage for various government obligations that require immediate liquidity and targeted transfers.
The loan is linked to the “Development Policy Loan for Fiscal Sustainability and Resilience in El Salvador” program, which seeks to strengthen the government’s fiscal management capacity, in accordance with the Fiscal Sustainability Law for Strengthening Public Finances.
The measure is part of a broader strategy to maintain appropriate macroeconomic policy and ensure the country’s financial stability in the face of economic challenges.
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