- The IMF Executive Board completed the Second and Third Reviews under El Salvador’s Extended Fund Facility (EFF) arrangement, allowing for an immediate disbursement equivalent to SDR 101.96 million (about US$138 million).
- El Salvador’s economy continues to perform strongly, supported by sustained improvements in security, and rising investor confidence, amid efforts to reduce macroeconomic imbalances.
- Fiscal consolidation has advanced, liquidity and reserve buffers have strengthened further, and reforms continue in the areas of financial resilience, governance, and transparency. Efforts to reduce the state’s involvement in Bitcoin-related activities and strengthen the regulation and oversight of crypto assets are ongoing.
- Sustaining these gains will require decisive and timely program implementation.
Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed the Second and Third Reviews under the Extended Fund Facility (EFF) arrangement for El Salvador. Completion of these reviews allows for an immediate disbursement of SDR 101.96 million (about US$138 million). El Salvador’s 40‑month EFF arrangement was approved on February 26, 2025, with total access equivalent to SDR 1,033.92 million (about US$1.4 billion). The authorities have consented to the publication of the Staff Report.
Economic activity has exceeded expectations, supported by sustained improvements in security and investor confidence, as macroeconomic imbalances continue to be addressed. Fiscal consolidation has advanced broadly in line with program objectives, and reserve and liquidity targets were comfortably met. Important progress has been achieved in financial sector reforms, fiscal transparency, AML/CFT reforms, and the transfer of majority ownership and control of the government e-wallet Chivo to a private operator. However, certain performance criteria were not met, including on the Bitcoin accumulation front, for which waivers were granted based on strong corrective measures and renewed commitments.
Going forward, the program will continue to focus on strengthening fiscal sustainability, rebuilding external buffers, enhancing financial sector resilience, advancing governance and transparency reforms, and supporting stronger and more inclusive growth. Following earlier delays, pension and civil service reforms will be pursued to support fiscal consolidation goals. Efforts will continue to reduce the state’s involvement in Bitcoin-related activities, strengthen crypto‑asset regulation and governance, and enhance transparency regarding public-sector crypto‑asset holdings. No further Bitcoin accumulation is envisaged beyond the documented donations.
Following the Executive Board discussion on El Salvador, Mr. Dan Katz, First Deputy Managing Director and Chair, issued the following statement:
“El Salvador’s economic program, supported by the Extended Fund Facility Arrangement, has been delivering tangible benefits and the authorities remain committed at the highest level to achieving its objectives. Real GDP growth has exceeded expectations, social outcomes have improved, fiscal and external buffers have strengthened, and sovereign spreads have declined markedly. Progress on the reform agenda has continued, although implementation challenges remain in some areas. Amid heightened external uncertainty, decisive program implementation and strong contingency planning remain essential. Sustaining reform momentum including through timely implementation of agreed corrective measures and delayed reforms will be key to safeguarding macroeconomic stability, preserving program credibility, and supporting durable and inclusive growth.
“Sustained fiscal consolidation remains essential to place public debt firmly on a downward trajectory and safeguard the debt anchor. Achieving higher primary surpluses will require further enhancements in revenue administration, continued expenditure restraint, and timely pension and civil service reforms. In addition, efforts should continue to strengthen public financial management, rebuild government liquidity buffers, and improve treasury and debt-management operations, including to avoid future slippages. Protecting priority social spending remains essential to support a further reduction in poverty.
