US embassy cable - 05SANSALVADOR2549

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