El Salvador defends finances after Fitch default warning

El Salvador on Monday defended its financial stability in response to rating agency Fitch's assessment it was in default of debt obligations, after the government failed to secure political backing to service interest payments due in April.

Fitch earlier said it judged the tiny Central American country "to be in default on its sovereign obligations" for failing to make interest payments on debt to private pension funds worth nearly $29 million.

Last week, the government could not get the necessary support from the conservative opposition to approve a financial package that covered the interest payments.

Source: Reuters