## Frequently Asked Questions on the Extended Fund Facility. ## Source details **Canonical URL:** [Frequently Asked Questions on the Extended Fund Facility.](https://www.imf.org/en/countries/slv/faq-eff) ## Other formats - [Markdown version](/en/countries/slv/faq-eff/index.md) - [Structured JSON version](/en/countries/slv/faq-eff/index.json) - [Bundle manifest](/en/countries/slv/faq-eff/bundle-manifest.json) --- ### Program approval and financing - The IMF Executive Board approved a new 40-month arrangement under the Extended Fund Facility (EFF) for about US$1.4 billion (equivalent SDR 1033.92 million or 360 percent of quota) to support the government’s economic reforms. - The approval allows an immediate disbursement of around US$113 million to support the government's economic reforms. - Further disbursements are subject to subsequent reviews and the observance of quantitative performance criteria and program objectives assessed holistically including via benchmarks. - A disbursement can be made immediately following the approval of the Executive Board; the total amount of the loan is not disbursed upfront. ### Fiscal policy - The program is anchored on improving the underlying primary balance by around 3½ percent of GDP over 3 years, to put the ratio of public debt to GDP on a firm downward path after peaking at 85 percent of GDP in 2024. - High quality measures worth 1½ percent of GDP in 2025, already included in the approved budget, will reduce the wage bill, spending on goods and services, and transfers to municipalities. - Reform efforts will center on: - Strengthening the efficiency of the civil service. - Strengthening the viability of the pension system. - Strengthening revenue mobilization. - Fiscal consolidation will be conducted in a manner that strengthens support for the most vulnerable and protects priority public investment. ### Transparency, governance, and resilience - Fiscal transparency will be substantially strengthened, starting with early efforts to: - Enhance the fiscal responsibility framework. - Improve the reporting of debt, pension costs, state-owned enterprises ownership, procurement contracts, and beneficiary ownership. - Early reforms will focus on establishing a strong anti-corruption framework and improving Anti-Money Laundering and Counter-Financial Terrorism (AML/CFT) arrangements in line with international best practices. - To boost the business climate and overall resilience, efforts will continue to cut red tape, modernize infrastructure, and implement a climate adaptation strategy with support from development partners. - When warranted, measures to strengthen governance may become part of an IMF lending program and might call for: - Strengthening controls on public spending. - Reducing discretion in revenue administration. - Issuing audited accounts of government agencies, central banks, and state-owned enterprises. - Other possible governance measures may focus on increasing transparency of natural resource management, enhancing bank supervision, or stepping up efforts to combat corruption and money laundering. ### Reserves and financial sector buffers - Fiscal and financial sector buffers will be enhanced, including through an early strengthening of the banks’ liquidity framework supportive of continued private sector credit growth. - Banks’ required liquidity buffers, currently at 11.5 percent of deposits, will gradually reach 15 percent by end-June 2026. - Fund financing will support the central bank’s gross reserves, thereby strengthening its capacity to address shocks. - Reforms will continue to align bank regulations with Basel III standards on risk-based supervision. ### Digital assets - The potential risks of the Bitcoin project will be diminished significantly in line with Fund policies and evolving international best practices. - Legal reforms will make acceptance of Bitcoin by the private sector voluntary. - For the public sector: - Engagement in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined. - Taxes will only be paid in U.S. dollars. - The government’s participation in the crypto e-wallet (Chivo) will be gradually unwound. - Transparency, regulation, and supervision of digital assets will be enhanced to safeguard financial stability, consumer and investor protection, and financial integrity. ### IMF tools, capacity development, and safeguards - The Extended Fund Facility (EFF) provides financial assistance to countries facing serious medium-term balance of payments problems because of structural impediments or slow growth. - The EFF helps countries implement medium-term structural reforms and offers longer program engagement and a longer repayment period. - As a means of safeguarding its resources, the IMF assesses the governance and transparency frameworks of central banks of countries to which it lends money. - In its capacity development efforts, the IMF works with countries to strengthen economic institutions by providing technical assistance and training on critical macroeconomic issues. --- ## References - [Press Release](https://www.imf.org/en/News/Articles/2025/02/26/pr25043-el-salvador-imf-approves-new-40-month-us1-bn-eff-arr) - [combat corruption and money laundering.](https://www.imf.org/en/About/Factsheets/Sheets/2023/Fight-against-money-laundering-and-terrorism-financing) - [safeguarding its resources, the IMF assesses the governance and transparency frameworks of central banks of countries to which it lends money.](https://www.imf.org/en/About/Factsheets/Sheets/2023/Protecting-IMF-resources-safeguards-assessments-of-central-banks) - [capacity developmentefforts, the IMF also works with countries to strengthen their economic institutions by providing technical assistance and training on critical macroeconomic issues.](https://www.imf.org/en/Capacity-Development/About) - [Extended Fund Facility (EFF)provides financial assistance to countries facing serious medium-term balance of payments problems because of structural impediments or slow growth. The EFF helps countries implement medium-term structural reforms and offers longer program engagement and a longer repayment period.](https://www.imf.org/en/About/Factsheets/Sheets/2023/Extended-Fund-Facility-EFF) _Source: https://www.imf.org/en/countries/slv/faq-eff_