El Salvador fails to obtain votes for $57 million pension allocation

By Caroline Salls

Pittsburgh, April 11 – El Salvador’s Ministry of Finance announced Tuesday that, despite favorable opinions from the finance and special budget committees, it was not able to obtain a qualified majority of 56 votes at an April 6 meeting for a $57 million budgetary allocation for the payment of pension obligations.

According to a news release, the government of El Salvador, through the ministry, has the financial means to pay the obligations, but the budget does not allow for the payment, which was not included in the draft of the general budget for fiscal year 2017.

The ministry said the payment was instead included in proposed budgetary reforms, which were suspended by the Supreme Court of Justice in November 2016.

Talks are ongoing to address the current funding situation, according to the release.

In addition, the ministry said amounts are available in the general budget for capital and interest owed on national and international financial claims for the fiscal year.

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