Abstract
2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for El Salvador
Fund Relations
(As of May 22, 2019)
Membership Status: Joined: March 14, 1946
| General Resources Account: | SDR Million | % Quota |
|---|---|---|
| Quota | 287.20 | 100.00 |
| Fund holdings of currency (Exchange Rate) | 287.20 | 100.00 |
| Reserve Tranche Position | 0.00 | 0.00 |
| General Resources Account: | SDR Million | % Quota |
|---|---|---|
| Quota | 287.20 | 100.00 |
| Fund holdings of currency (Exchange Rate) | 287.20 | 100.00 |
| Reserve Tranche Position | 0.00 | 0.00 |
| SDR Department: | SDR Million | % Allocation |
|---|---|---|
| Net cumulative allocation | 163.81 | 100.00 |
| Holdings | 165.58 | 101.08 |
| SDR Department: | SDR Million | % Allocation |
|---|---|---|
| Net cumulative allocation | 163.81 | 100.00 |
| Holdings | 165.58 | 101.08 |
Outstanding Purchases and Loans:
None
Latest Financial Arrangements:
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| Stand-By | 03/17/2010 | 03/16/2013 | 513.90 | 0.00 |
| Stand-By | 01/16/2009 | 03/16/2010 | 513.90 | 0.00 |
| Stand-By | 09/23/1998 | 02/22/2000 | 37.68 | 0.00 |
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| Stand-By | 03/17/2010 | 03/16/2013 | 513.90 | 0.00 |
| Stand-By | 01/16/2009 | 03/16/2010 | 513.90 | 0.00 |
| Stand-By | 09/23/1998 | 02/22/2000 | 37.68 | 0.00 |
Projected Payments to Fund
(SDR Million; based on existing use of resources and present holdings of SDRs):
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2016 | 2017 | 2018 | 2019 | 2020 | |
| Principal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Charges/Interest | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2016 | 2017 | 2018 | 2019 | 2020 | |
| Principal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Charges/Interest | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Exchange Rate Arrangement. The U.S. dollar is legal tender and circulates freely. The dollar is used as a unit of account and a medium of exchange, with no limitations. All payments may be made in either dollars or colones. The BCR has the obligation to exchange colones for dollars upon request from banks, at a fixed and unalterable exchange rate of C8.75 per U.S. dollar. As a result, El Salvador has an exchange rate arrangement with no separate legal tender category. El Salvador has accepted the obligations of Article VIII, Sections 2(a), 3, and 4, and maintains an exchange system that is free of restrictions on the making of payments and transfers for current international transactions.
Article IV Consultation. The last Article IV consultation was concluded on May 11, 2018 (Country Report No. 18/151).
FSAP participation and ROSCs. An FSAP Update was conducted in 2010 and the report was considered by the Executive Board on September 15, 2010. A fiscal ROSC was conducted in 2011. A data module ROSC was conducted in 2004.
Technical Assistance.
Technical Assistance.
| Department | Delivery date | Purpose |
|---|---|---|
| Tax Administration | ||
| FAD | 8/8/2016 8/16/2016 11/7/2016 |
Improve services to taxpayers |
| 8/22/2016 11/21/2016 7/3/2017 |
Strengthening the management of the tax administration | |
| 2/15/2017 1/29/2018 3/5/2018 |
Strengthening the control of VAT credit | |
| 2/20/2017 3/21/2019 |
Strengthening the taxpayer registry | |
| 3/5/2018 11/1/2018 2/26/2019 3/15/2019 |
Strengthening tax audits | |
| 8/17/2018 | Improve management of declarations | |
| 10/17/2018 | Tax Administration Diagnostic Administration Tool (TADAT) | |
| 2/22/2019 | Strengthen Voluntary Compliance | |
| 8/10/2019 | Improve management of declarations | |
| Customs Administration | ||
| FAD | 4/24/2017 | Risk Management in Customs |
| 9/28/2017 | OAS program launch | |
| 10/16/2017 4/30/2018 8/24/2018 12/14/2018 |
Integral cargo control | |
| 11/20/2017 3/12/2018 |
Improvement of dispatch and registry process in Customs | |
| 11/20/2017 | Risk-based segmentation of traders | |
| 2/8/2019 | Post clearance audit | |
| Public Financial Management | ||
| FAD | 10/17/2016 4/3/2017 |
Treasury Single Account |
| 4/9/2018 | Budget-PIMA | |
| 3/22/2017 | Workshop- Treasury Management | |
| Financial Supervision and Regulation | ||
| MCM | 11/21/2016 12/5/2016 3/13/2017 8/21/2017 4/9/2018 3/27/2017 |
Liquidity risk supervision |
| 7/10/2017 7/12/2017 3/19/2018 |
Credit risk supervision | |
| 8/21/2017 3/19/2018 1/25/2019 |
Insurance supervision | |
| 12/7/2018 4/26/2019 |
IT risk supervision | |
| 10/19/2018 3/22/2019 |
Market risk supervision | |
| Central Banking | ||
| MCM | 7/18/2016 3/12/2018 3/26/2018 |
Strengthening projection and overall analysis |
| 10/16/2017 10/25/2017 |
Strengthening capacities for producing and evaluating systemic risk indicators | |
| National Accounts and Price Statistics | ||
| STA | 9/18/2017 | Economic Activity Volume Indicators |
| 2/26/2018 | Monthly Activity Indicators | |
| 8/24/2018 3/1/2019 5/3/2019 |
National accounts | |
| Government Finance Statistics | ||
| STA | 10/2/2017 8/24/2018 |
Diagnostic mission for Government Finance Statistics |
| 10/9/2017 | Strengthening the delivery of TA in GFS | |
| 10/9/2017 | GFS implementation | |
| 10/9/2017 | Strengthening CD in GFS topics | |
| 3/5/2019 | Regional GFS Harmonization | |
| 4/12/2019 | Quarterly Data Compilation | |
| External Sector Statistics | ||
| STA | 4/5/2019 | Strengthening source data for the compilation of external sector statistics |
Technical Assistance.
| Department | Delivery date | Purpose |
|---|---|---|
| Tax Administration | ||
| FAD | 8/8/2016 8/16/2016 11/7/2016 |
Improve services to taxpayers |
| 8/22/2016 11/21/2016 7/3/2017 |
Strengthening the management of the tax administration | |
| 2/15/2017 1/29/2018 3/5/2018 |
Strengthening the control of VAT credit | |
| 2/20/2017 3/21/2019 |
Strengthening the taxpayer registry | |
| 3/5/2018 11/1/2018 2/26/2019 3/15/2019 |
Strengthening tax audits | |
| 8/17/2018 | Improve management of declarations | |
| 10/17/2018 | Tax Administration Diagnostic Administration Tool (TADAT) | |
| 2/22/2019 | Strengthen Voluntary Compliance | |
| 8/10/2019 | Improve management of declarations | |
| Customs Administration | ||
| FAD | 4/24/2017 | Risk Management in Customs |
| 9/28/2017 | OAS program launch | |
| 10/16/2017 4/30/2018 8/24/2018 12/14/2018 |
Integral cargo control | |
| 11/20/2017 3/12/2018 |
Improvement of dispatch and registry process in Customs | |
| 11/20/2017 | Risk-based segmentation of traders | |
| 2/8/2019 | Post clearance audit | |
| Public Financial Management | ||
| FAD | 10/17/2016 4/3/2017 |
Treasury Single Account |
| 4/9/2018 | Budget-PIMA | |
| 3/22/2017 | Workshop- Treasury Management | |
| Financial Supervision and Regulation | ||
| MCM | 11/21/2016 12/5/2016 3/13/2017 8/21/2017 4/9/2018 3/27/2017 |
Liquidity risk supervision |
| 7/10/2017 7/12/2017 3/19/2018 |
Credit risk supervision | |
| 8/21/2017 3/19/2018 1/25/2019 |
Insurance supervision | |
| 12/7/2018 4/26/2019 |
IT risk supervision | |
| 10/19/2018 3/22/2019 |
Market risk supervision | |
| Central Banking | ||
| MCM | 7/18/2016 3/12/2018 3/26/2018 |
Strengthening projection and overall analysis |
| 10/16/2017 10/25/2017 |
Strengthening capacities for producing and evaluating systemic risk indicators | |
| National Accounts and Price Statistics | ||
| STA | 9/18/2017 | Economic Activity Volume Indicators |
| 2/26/2018 | Monthly Activity Indicators | |
| 8/24/2018 3/1/2019 5/3/2019 |
National accounts | |
| Government Finance Statistics | ||
| STA | 10/2/2017 8/24/2018 |
Diagnostic mission for Government Finance Statistics |
| 10/9/2017 | Strengthening the delivery of TA in GFS | |
| 10/9/2017 | GFS implementation | |
| 10/9/2017 | Strengthening CD in GFS topics | |
| 3/5/2019 | Regional GFS Harmonization | |
| 4/12/2019 | Quarterly Data Compilation | |
| External Sector Statistics | ||
| STA | 4/5/2019 | Strengthening source data for the compilation of external sector statistics |
Resident Representative: Gerardo Peraza (based in Guatemala) is the Regional Resident Representative for Central America, Panama and the Dominican Republic.
Relations with Other Financial Institutions
World Bank
http://www.worldbank.org/en/country/elsalvador
Inter-American Development Bank
Statistical Issues
(As of April 2019)
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision is adequate for surveillance. | |
| National Accounts: The Central Reserve Bank of El Salvador disseminates annual and quarterly national accounts, following the System of National Accounts 1993 (1993 SNA), and including key recommendations from the 2008 SNA. The series, available for 2005–18, with benchmark year 2005, are disseminated by the production and expenditure approaches, and Supply and Use Tables are disseminated for 2014–16 and Input-Output Tables for 2005 and 2014. In addition, a monthly index of economic activity (IVAE), which is consistent with the quarterly and annual national accounts, is disseminated on a regular basis. The rebased national accounts and monthly index of economic activity series were published on March 23, 2018. | |
| Price Statistics: Price statistics are disseminated at monthly frequency. Consumer Price Index weights are based on the 2005–06 Household Income and Expenditure Survey. A broad PPI, with base year 2009, is compiled and disseminated on the website of the Central Reserve Bank. | |
| Government Finance Statistics: Local government statistics are not separately identified within “other general government,” while local government debt is not included in the definition of public debt as reported by the Ministry of Finance. Nonfinancial public enterprise statistics are reported on a consolidated basis but are not comprehensive as the criterion of over 50 percent public ownership is not always followed. The coverage and periodicity of data on central government financing and debt is adequate. The country participates in a regional capacity development program for the harmonization of GFS for Central America, Panama, and the Dominican Republic led by the IMF’s Regional Center for Technical Assistance (CAPTAC-DR). A workshop to launch this program was conducted on September 2017, where all country participants discussed the status in applying the GFS methodology in their countries, and defined expected outcomes and priorities under this program. The next technical assistance mission from CAPTAC-DR under this program is scheduled for August 2018. |
|
| Monetary and Financial Statistics: The Central Reserve Bank of El Salvador (CRBS) compiles and disseminates monetary and financial statistics (MFS), with concepts, definitions, and classification that are broadly in line with the Monetary and Financial Statistics Manual (MFSM) 2000. The CRBS uses standardized report forms based on accounting data to report data to the Fund. The CRBS regularly reports monthly financial soundness indicators (FSIs) to the IMF for publication. Currently, the BCB reports all core and 5 encouraged FSIs. Plans are under way to compile the rest of the encouraged FSIs. |
|
| Financial Sector Statistics: Data coverage is broadly adequate. However, comprehensive data on household and corporate balance sheets, as well as on housing prices, which are currently not available, would be useful for more effective surveillance. | |
| External Sector Statistics: The Central Bank of El Salvador compiles and reports all key ESS datasets, except for the Coordinated Portfolio Investment Survey (CPIS). Authorities expressed interest in disseminating CPIS in 2019. The Coordinated Direct Investment Survey (CDIS) is incomplete, with inward direct investment reported and limited coverage for outward direct investment. Further work on improving coverage of nonfinancial private sector transactions is needed as well as comprehensive granularity in the reporting of external debt statistics. | |
| II. Data Standards and Quality | |
| El Salvador is a subscriber to the Fund’s Special Data Dissemination Standard (SDDS) since 1998. El Salvador is taking a flexibility option for the periodicity of the labor market and wages/earnings data category and will continue at this time to publish annual data with a timeliness of one quarter after the end of the reference year. | A data ROSC was published in December 2004. |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision is adequate for surveillance. | |
| National Accounts: The Central Reserve Bank of El Salvador disseminates annual and quarterly national accounts, following the System of National Accounts 1993 (1993 SNA), and including key recommendations from the 2008 SNA. The series, available for 2005–18, with benchmark year 2005, are disseminated by the production and expenditure approaches, and Supply and Use Tables are disseminated for 2014–16 and Input-Output Tables for 2005 and 2014. In addition, a monthly index of economic activity (IVAE), which is consistent with the quarterly and annual national accounts, is disseminated on a regular basis. The rebased national accounts and monthly index of economic activity series were published on March 23, 2018. | |
| Price Statistics: Price statistics are disseminated at monthly frequency. Consumer Price Index weights are based on the 2005–06 Household Income and Expenditure Survey. A broad PPI, with base year 2009, is compiled and disseminated on the website of the Central Reserve Bank. | |
| Government Finance Statistics: Local government statistics are not separately identified within “other general government,” while local government debt is not included in the definition of public debt as reported by the Ministry of Finance. Nonfinancial public enterprise statistics are reported on a consolidated basis but are not comprehensive as the criterion of over 50 percent public ownership is not always followed. The coverage and periodicity of data on central government financing and debt is adequate. The country participates in a regional capacity development program for the harmonization of GFS for Central America, Panama, and the Dominican Republic led by the IMF’s Regional Center for Technical Assistance (CAPTAC-DR). A workshop to launch this program was conducted on September 2017, where all country participants discussed the status in applying the GFS methodology in their countries, and defined expected outcomes and priorities under this program. The next technical assistance mission from CAPTAC-DR under this program is scheduled for August 2018. |
|
| Monetary and Financial Statistics: The Central Reserve Bank of El Salvador (CRBS) compiles and disseminates monetary and financial statistics (MFS), with concepts, definitions, and classification that are broadly in line with the Monetary and Financial Statistics Manual (MFSM) 2000. The CRBS uses standardized report forms based on accounting data to report data to the Fund. The CRBS regularly reports monthly financial soundness indicators (FSIs) to the IMF for publication. Currently, the BCB reports all core and 5 encouraged FSIs. Plans are under way to compile the rest of the encouraged FSIs. |
|
| Financial Sector Statistics: Data coverage is broadly adequate. However, comprehensive data on household and corporate balance sheets, as well as on housing prices, which are currently not available, would be useful for more effective surveillance. | |
| External Sector Statistics: The Central Bank of El Salvador compiles and reports all key ESS datasets, except for the Coordinated Portfolio Investment Survey (CPIS). Authorities expressed interest in disseminating CPIS in 2019. The Coordinated Direct Investment Survey (CDIS) is incomplete, with inward direct investment reported and limited coverage for outward direct investment. Further work on improving coverage of nonfinancial private sector transactions is needed as well as comprehensive granularity in the reporting of external debt statistics. | |
| II. Data Standards and Quality | |
| El Salvador is a subscriber to the Fund’s Special Data Dissemination Standard (SDDS) since 1998. El Salvador is taking a flexibility option for the periodicity of the labor market and wages/earnings data category and will continue at this time to publish annual data with a timeliness of one quarter after the end of the reference year. | A data ROSC was published in December 2004. |
El Salvador: Common Indicators Required for Surveillance
(As of April 15, 2019)
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign banks, domestic banks, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
El Salvador: Common Indicators Required for Surveillance
(As of April 15, 2019)
| Date of Latest Observation | Date Received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | NA | NA | NA | NA | NA |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | Mar-2019 | Mar-2019 | M | M | M |
| Reserve/Base Money | Feb-2019 | Mar-2019 | M | M | M |
| Broad Money | Feb-2019 | Mar-2019 | M | M | M |
| Central Bank Balance Sheet | Feb-2019 | Mar-2019 | M | M | M |
| Consolidated Balance Sheet of the Banking System | Feb-2019 | Mar-2019 | M | M | M |
| Interest Rates2 | Apr-2019 | Apr-2019 | W | W | W |
| Consumer Price Index | Mar-2019 | Apr-2019 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3–– General Government4 | Feb-2019 | Mar-2019 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing4–– Central Government | Feb-2019 | Mar-2019 | M | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | Feb-2019 | Mar-2019 | M | M | M |
| External Current Account Balance | Dec-2018 | Mar-2019 | Q | Q | Q |
| Exports and Imports of Goods | Feb-2019 | Mar-2019 | M | M | M |
| Exports and Imports of Services | Dec-2018 | Mar-2019 | Q | Q | Q |
| GDP/GNP | Dec-2018 | Mar-2019 | Q | Q | Q |
| Gross External Debt | Dec-2018 | Mar-2019 | Q | Q | Q |
| International Investment Position6 | Dec-2018 | Mar-2019 | Q | Q | Q |
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign banks, domestic banks, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
El Salvador: Common Indicators Required for Surveillance
(As of April 15, 2019)
| Date of Latest Observation | Date Received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | NA | NA | NA | NA | NA |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | Mar-2019 | Mar-2019 | M | M | M |
| Reserve/Base Money | Feb-2019 | Mar-2019 | M | M | M |
| Broad Money | Feb-2019 | Mar-2019 | M | M | M |
| Central Bank Balance Sheet | Feb-2019 | Mar-2019 | M | M | M |
| Consolidated Balance Sheet of the Banking System | Feb-2019 | Mar-2019 | M | M | M |
| Interest Rates2 | Apr-2019 | Apr-2019 | W | W | W |
| Consumer Price Index | Mar-2019 | Apr-2019 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3–– General Government4 | Feb-2019 | Mar-2019 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing4–– Central Government | Feb-2019 | Mar-2019 | M | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | Feb-2019 | Mar-2019 | M | M | M |
| External Current Account Balance | Dec-2018 | Mar-2019 | Q | Q | Q |
| Exports and Imports of Goods | Feb-2019 | Mar-2019 | M | M | M |
| Exports and Imports of Services | Dec-2018 | Mar-2019 | Q | Q | Q |
| GDP/GNP | Dec-2018 | Mar-2019 | Q | Q | Q |
| Gross External Debt | Dec-2018 | Mar-2019 | Q | Q | Q |
| International Investment Position6 | Dec-2018 | Mar-2019 | Q | Q | Q |
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign banks, domestic banks, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).