IMF Staff Statement on El Salvador
IMF News, December 22, 2025
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- Published: December 22, 2025
Status of IMF engagement and negotiations
- Mr. Torres, Mission Chief for El Salvador, issued the statement following in person and virtual discussions over the past months with the Salvadoran authorities on the second review of the 40-month Extended Fund Facility (EFF) Arrangement.
- “Progress continues in the negotiations toward a staff level agreement on the second review of the EFF program.”
- “Close engagement with the Salvadoran authorities is expected to continue in the period ahead with the objective of reaching a staff level agreement on all policies and reforms needed to complete the second review of the EFF program.”
Economic outlook and growth
- “The economy is expanding at a faster than anticipated pace on the back of improved confidence, record remittances, and buoyant investment.”
- “Real GDP growth is projected to reach around 4 percent this year and with very good prospects for next year.”
Fiscal policy, targets, and budget
- “The authorities’ commitment to fiscal consolidation remains strong—the end-2025 primary balance target is well on track to be met.”
- “The recently approved 2026 Budget is consistent with a further reduction in the deficit along with an expansion in social spending.”
- “These efforts are supporting reserve accumulation and a reduction in domestic borrowing in line with program targets.”
Structural reforms and financial sector stability
- “The structural agenda is advancing.”
- Published and policy tools:
- “An actuarial pension study has been recently published, along with a Medium-Term Fiscal Framework.”
- “Financial stability reforms have been approved to strengthen the legal framework for bank resolution, crisis management, and deposit insurance schemes.”
- “Basel III regulations have been recently adopted to enhance liquidity coverage and net stable funding.”
- “Meanwhile, a new AML/CFT law has been approved by the Legislative Assembly, better aligning the legal framework with international best practices.”
Digital currency, Chivo e-wallet, and Bitcoin project
- “Negotiations for the sale of the government e-wallet Chivo are well advanced.”
- “Discussions with regards to the Bitcoin project continue, centered on enhancing transparency, safeguarding public resources, and mitigating risks.”
IMF Staff Statement on El Salvador, December 22, 2025