Latin America News
LAST UPDATE: May 28, 2025
IMF Reaches Agreement Under First Review of $1.4 Billion El Salvador Program
The International Monetary Fund (IMF) has reached a staff-level agreement with El Salvador to disburse approximately $120 million under the first review of a 40-month, $1.4 billion extended fund facility program.
Insight
El Salvador’s successful completion of the first review under the IMF program indicates progress in implementing economic reforms. The anticipated disbursement will support the country’s fiscal stability and reform agenda. However, the IMF has emphasized the need for El Salvador to limit its involvement with Bitcoin, suggesting that continued engagement with cryptocurrency could pose risks to financial stability. Balancing innovative financial strategies with traditional economic policies remains a challenge for the Salvadoran government.
Canada PM Carney Says Ottawa, Washington in Intensive Talks on New Economic, Security Deal
Canadian Prime Minister Mark Carney announced that Canada and the US are engaged in intensive negotiations to establish a new bilateral economic and security agreement amid rising tensions under US President Trump’s protectionist policies.
Insight
The ongoing negotiations between Canada and the US aim to address the economic strain caused by recent tariffs and to strengthen security cooperation. Prime Minister Carney’s emphasis on national sovereignty and diversified economic ties reflects Canada’s intent to reduce overreliance on the US market. The discussions also include potential Canadian participation in the US-proposed “Golden Dome” missile defense system, highlighting the intertwined nature of economic and security considerations in bilateral relations.
Uruguay Holds Key Rate at 9.25%, Reinforces Tight Policy Stance
Uruguay’s central bank has maintained its benchmark interest rate at 9.25%, signaling a continued tight monetary policy to combat inflation and support economic stability.
Insight
By keeping the interest rate steady, Uruguay’s central bank demonstrates its commitment to controlling inflation and maintaining economic stability. This decision reflects confidence in the current monetary policy’s effectiveness and a cautious approach to potential external economic shocks. The high-interest rate environment may impact borrowing costs and investment but is deemed necessary to anchor inflation expectations and preserve financial stability.
