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Caribbean & Central America - December 2016 (ISSN 1741-4458)
EL SALVADOR: Danger averted
After domestic and international admonition, El Salvador’s main political parties finally managed to agree on 10 November on a fiscal pact which has averted a default, at least in the short-term. The ruling left-wing Frente Farabundo Martí para la Liberación Nacional (FMLN) and the main opposition party, the right-wing Alianza Republicana Nacionalista (Arena) had been widely criticised for fiddling while Rome burnt. Crisis talks dragged on for a full six weeks before Arena eventually agreed to approve a US$550m bond emission, less than half the amount sought by the government (US$1.2bn) but enough to tide it over for now.
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