NEW YORK, (Reuters) – The International Monetary Fund announced Wednesday that it had been in Washington this week with an El Salvador delegation for annual talks. These talks could be used to “underpin” discussion about a new loan program.

Talks over a possible $1 billion loan agreement are being revived by the Salvadoran government. The Fund stated that discussions on the agreement had been stopped since April.

Five Supreme Court judges were fired and the head prosecutor was dismissed in May, resulting in a strained relationship between Nayib’s government and America, which is the biggest IMF shareholder. A sticking point was also the U.S. anti-corruption policy in the region.

Alina Carare from the IMF Mission to El Salvador stated, “Developments after (April) will require some refining of policies required to ensure inclusive and fiscal sustainability, financial stability, and financial stability.”

“The discussion will revolve around the policies that underpin any potential IMF programs.”

The Fund stated that the meetings began on Monday afternoon and would continue virtually until El Salvador returns in November.

Salvadoran officials did not respond immediately to our requests for comment.

Carare stated that “The 2021 Article IV Consultation Process will be Complete after the Discussions at the Executive Board which will take place in a couple months after end of mission,” referring to IMF’s normal procedure for reviewing member countries.

The Salvadoran bond spreads against U.S. Treasuries soared to an all-time high of 1,100 basis points late September. They are now at over 1,000 bps. This is a significant increase that could close down the country’s financing market and highlight the need for a deal with IMF.