The International Monetary Fund (IMF) Executive Board has concluded the 2025 Article IV consultation and completed the first review of the Extended Fund Facility (EFF) arrangement for El Salvador. This completion allows for an immediate disbursement of SDR 86.16 million, approximately US$118 million, increasing total disbursements under this arrangement to SDR 172.32 million, about US$231 million. The authorities have agreed to publish the Staff Report.
El Salvador's EFF arrangement spans 40 months and was approved on February 26, 2025, with a total access of SDR 1,033.92 million or about US$1.4 billion. The program focuses on strengthening public finances, rebuilding external and financial buffers, and enhancing governance and transparency frameworks to foster stronger growth.
Program performance is reported as solid with economic expansion ongoing as macroeconomic imbalances are addressed. Fiscal and international reserve targets were met with progress in governance, transparency, and financial resilience reforms. Notable actions include enacting a new Fiscal Sustainability Law, issuing a presidential decree limiting exceptions to the Procurement Law, publishing financial information on large state-owned enterprises, and making public contract information more accessible. Efforts continue to mitigate Bitcoin-associated risks and reduce public sector participation in Chivo.
The Article IV consultation emphasized policies for medium-term growth and resilience focusing on foreign direct investment support, employment, exports while considering external challenges.
Following discussions on El Salvador, Mr. Nigel Clarke, Deputy Managing Director and Acting Chair of the IMF Executive Board issued a statement summarizing their assessment.