Identifier
Created
Classification
Origin
05SANSALVADOR2549
2005-09-14 20:03:00
UNCLASSIFIED
Embassy San Salvador
Cable title:  

FINANCE VICE MINISTER SHARES U.S. VIEW ON

Tags:  ECIN EAIR EAID EFIN ES UNGA 
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UNCLAS SAN SALVADOR 002549

SIPDIS

E.O. 12958: N/A
TAGS: ECIN EAIR EAID EFIN ES UNGA
SUBJECT: FINANCE VICE MINISTER SHARES U.S. VIEW ON
INNOVATIVE SOURCES OF FINANCING FOR DEVELOPMENT

REF: STATE 162146

Post shared reftel document with the Ministry of Foreign
Affairs officer in charge of United Nations and Multilateral
Affairs, Felix Ulloa (currently in New York); staff at the
Technical Secretariat (Office of the Presidency); and with
the Vice Minister of Finance Carmen Regina de Arevalo. In a
September 13 discussion with Embassy officials, the Vice
Minister said that she supported the U.S. position. De
Arevalo objected both to an international airline tax and a
possible bond issuance by an IFF. She was particularly
vehement in relation to the bond proposal since El Salvador,
as a country that finances part of its budget deficit through
international bond issues, would have to compete with the
issuing institution for funds. She expressed concern that a
large single borrowing might affect conditions in the market.
Speaking frankly, De Arevalo and other Salvadoran economic
officials also expressed skepticism that El Salvador would be
on the receiving end when the funds were distributed,
expecting that the funds would, rather, be channeled to
countries or regions suffering chronic extreme poverty. Post
has not received specific feedback from the Ministry of
Foreign Affairs although MFA was interested U.S. views on the
subject.
Butler