El Salvador finance minister says possible IMF deal no panacea


  • World
  • Friday, 15 Jul 2022

FILE PHOTO: El Salvador's Finance Minister Alejandro Zelaya speaks during a news conference in San Salvador, El Salvador March 18, 2022. REUTERS/Jose Cabezas

SAN SALVADOR (Reuters) - Salvadoran Finance Minister Alejandro Zelaya minimized on Thursday the potential positive impact of a long-delayed deal with the International Monetary Fund, even as the highly indebted country stares down a possible medium-term default.

El Salvador announced it was negotiating a possible $1.3 billion loan with the IMF in March 2021, aimed at filling gaps in the Central American country's budget and reducing high costs associated with the country's debt, which in March surpassed $24 billion.

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