- IMF staff and the Salvadoran authorities have reached staff-level agreement on the combined second and third reviews of the 40-month arrangement under the Extended Fund Facility (EFF). Subject to approval by the IMF Executive Board, El Salvador would receive around US$140 million (SDR 101.96 million).
- The program is delivering positive results. Economic activity has outperformed expectations, while fiscal and external imbalances are being addressed in line with program commitments. The structural reform agenda continues to progress. The ownership and operational control of the government's e-wallet have been transferred to a private operator, and no public resources have been used for Bitcoin accumulation.
- Continued implementation of the authorities' ambitious reform agenda remains essential to further strengthen macroeconomic stability and resilience, reduce public debt, enhance governance, and support stronger and more inclusive private-sector-led growth.
Washington, DC: IMF staff and the Salvadoran authorities have reached staff-level agreement on the combined second and third reviews under El Salvador's Extended Fund Facility (EFF) arrangement [1] . The agreement is subject to approval by the IMF Executive Board and the completion of the agreed prior actions.
Upon the conclusion of these discussions, Mr. Torres, Mission Chief for El Salvador, issued the following statement:
"El Salvador's economy continues to perform strongly. Real GDP growth exceeded expectations in 2025 and is expected to reach 4.5 percent in 2026, supported by strong investment and private consumption, along with robust remittance, tourism, and capital inflows. These dynamics have been underpinned by further improvements in security and increased investor confidence, resulting from the implementation of prudent macroeconomic policies aimed at strengthening fiscal and external buffers. The program is also contributing to a significant decline in poverty, supported by improvements in the efficiency of public services.
Against this backdrop, understandings were reached on policies to continue to safeguard program objectives and support durable and inclusive growth:
- The fiscal consolidation will deepen through continued prudent expenditure policies and revenue administration improvements, while creating space for priority infrastructure and social programs. The NFPS primary surplus is expected to further strengthen from 2.9 percent of GDP this year to 3.7 percent of GDP in 2027, consistent with the Fiscal Responsibility Law objective of reducing the public debt-to-GDP ratio to 80 percent by 2030. In tandem, work will continue to strengthen the pension system through the recognition of liabilities arising from the expiration of the grace period on interest payments owed to private pension funds, and the enactment of a parametric pension reform in line with IMF recommendations next year. In addition, a civil service reform will be prepared to improve the efficiency and quality of public service delivery while supporting long-term fiscal sustainability.
- After exceeding targets, reserve and liquidity buffers will continue to be strengthened to boost resilience. Reform momentum will continue to enhance financial sector regulation and oversight, crisis-management and resolution frameworks, and the Central Bank's institutional and financial position.
- Reforms will further deepen to improve transparency and governance, including through enhancements to the AML/CFT framework and the publication of asset declarations of high-level public officials. Efforts will continue to improve public financial reporting, beneficial ownership transparency, and accountability institutions, consistent with international best practices.
- Public participation in the e-wallet Chivo has been substantially unwound, and efforts are underway to enhance transparency of Bitcoin holdings across the various wallets. Majority ownership and operational control have been transferred to a private operator, while a minority stake and custodial responsibilities for customer assets have been retained by the government.
- Documentation has been provided verifying that Bitcoin accumulation since the first review reflects private donations and that no public resources were used. Understandings were also reached on steps to modernize the legal, regulatory, and supervisory framework for digital assets and to further strengthen the governance and risk-management arrangements for public-sector crypto-asset holdings. Going forward, no further Bitcoin accumulation beyond the documented donations is expected.
IMF staff and the authorities share the view that strong program ownership and timely implementation of reforms remain critical to further strengthen macroeconomic stability and resilience, and create the conditions for sustainable, inclusive, and private-sector-led growth. IMF staff thank the Salvadoran authorities for the constructive discussions and excellent collaboration."
[1] The EFF was approved by the IMF Executive Board on February 26, 2025, with total access of SDR 1,033.92 million (about US$1.4 billion or 360 percent of quota), and the first review was concluded on June 27, 2025. SDR 172.32 million has been disbursed so far.
