The IMF says it has agreed in principle to loan about $800m to El Salvador to support the country’s economic program for 2009. However, Savadoran authorities intend to treat the arrangement as precautionary and do not intend to draw on it, the IMF notes. An IMF spokesman says that the loan would have 5 instalments and a grace period of 2 years and 3 months. The repayment period is two years after each tranche. If El Salvador never uses the loan, it will pay a commitment fee of 0.25%, but if the country does draw, it will have to pay a variable interest rate that is currently around 1.5% plus a premium of 1.87% for the first tranche. Subsequent drawings, says the spokesman, will have an additional premium of 1.0%.