## El Salvador: Request for Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for El Salvador

_IMF Staff Country Reports, March 3, 2025_

## Source details

**Canonical URL:** [El Salvador: Request for Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for El Salvador](https://www.imf.org/en/publications/cr/issues/2025/03/03/el-salvador-request-for-extended-arrangement-under-the-extended-fund-facility-press-release-562921)

## Other formats

- [Markdown version](/en/publications/cr/issues/2025/03/03/el-salvador-request-for-extended-arrangement-under-the-extended-fund-facility-press-release-562921/index.md)
- [Structured JSON version](/en/publications/cr/issues/2025/03/03/el-salvador-request-for-extended-arrangement-under-the-extended-fund-facility-press-release-562921/index.json)
- [Bundle manifest](/en/publications/cr/issues/2025/03/03/el-salvador-request-for-extended-arrangement-under-the-extended-fund-facility-press-release-562921/bundle-manifest.json)

## Bibliographic details
- Published: March 3, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229003483.002

---

### Overview
- Publication date: March 3, 2025.
- The paper examines El Salvador’s Request for an Extended Arrangement under the Extended Fund Facility.
- Core objective: ensure conditions are in place to boost El Salvador’s growth prospects and resilience by strengthening public finances, rebuilding external and financial buffers, and improving governance and transparency.
- Decisive ownership, implementation, and broad political and public support are identified as critical for program success.

### Macroeconomic performance and recent developments
- The Salvadorean economy is described as steadily expanding.
- Key drivers of expansion: robust remittances and tourism, and a greatly improved security situation.
- External deficits have narrowed.
- Inflation has fallen.
- Recent liability management operations have reduced near-term financing needs.
- Bitcoin risks are being addressed as part of the program considerations.

### Program objectives and policy focus
- Address macroeconomic imbalances.
- Strengthen governance and transparency.
- Boost growth prospects and resilience through:
  - Strengthening public finances.
  - Rebuilding external and financial buffers.
  - Improving governance and transparency.
- Emphasis on agile policy making and contingency planning to manage downside risks in the context of dollarization.

### Risks and contingency planning
- Downside risks are highlighted in the context of dollarization, requiring agile policymaking and contingency plans.
- Political economy dimension: broad political and public support is necessary for successful implementation.
- Financial operations: recent liability management reduced near-term financing needs but underline importance of rebuilding buffers.

### Policy recommendations and implementation priorities
- Ensure decisive ownership and robust implementation of policy measures.
- Strengthen governance and transparency frameworks (including measures relevant to Bitcoin transparency and audited financial statements).
- Rebuild external and financial buffers to enhance resilience.
- Pursue contingency planning tailored to constraints of dollarization.
- Address anti-money laundering and combating the financing of terrorism (AML/CFT) considerations integral to program design.

### Subject areas and keywords (as listed)
- Anti-money laundering and combating the financing of terrorism (AML/CFT)
- Crime
- Economic sectors
- Expenditure
- Pension spending
- Public debt
- Public sector
- audited financial statements
- Bitcoin transparency
- Caribbean
- Central America
- Global
- publication of asset declaration
- staff appraisal

*Source: International Monetary Fund — El Salvador: Request for Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for El Salvador (March 3, 2025).*

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## Content in this bundle

- **1slvea2025001-print-pdf**
  - [1slvea2025001-print-pdf (Markdown version)](/-/media/files/publications/cr/2025/english/1slvea2025001-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [1slvea2025001-print-pdf (PDF)](/-/media/files/publications/cr/2025/english/1slvea2025001-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2025/03/03/el-salvador-request-for-extended-arrangement-under-the-extended-fund-facility-press-release-562921_