A. M. 
Courtesy
In search of strengthening public finances, the Government of El Salvador has made significant progress in talks with the International Monetary Fund (IMF) to improve the country’s economic growth prospects. This is confirmed in a recent report issued by the financial organization.
“Progress has been made in negotiations toward a Fund-supported program focused on policies to strengthen public finances” the IMF report mentions. Among the outstanding achievements is the elaboration of a plan to gradually strengthen the financial system’s reserve mechanisms, compatible with private sector growth and credit.
The report also highlights efforts to reduce the salvadoran government’s dependence on domestic financing. This will be done through planned consolidation and possible support from the IMF and other multilateral development banks. Preliminary agreements have also been reached on a comprehensive multi-year strategy to improve governance, transparency, and the overall investment climate.
“The authorities are well advanced in preparing legislative proposals to address corruption, money laundering vulnerabilities, and weaknesses in public procurement frameworks”, the report notes.
These initiatives seek to align legal frameworks with international best practices.
The IMF stresses that this effort is supported by development partners, ensuring that the reforms are sustainable and effective in the long term.
