|

IMF Acknowledges Progress On El Salvador Reforms, Cites Stronger Growth

According to an IMF employees assertion launched on December 22, 2025, El Salvador has made measurable progress on its reform program and is seeing quicker financial development than earlier anticipated.

The IMF said discussions on the second assessment of the nation’s 40-month Extended Fund Facility program are ongoing as authorities work to satisfy agreed benchmarks. Growth forecasts had been revised upward, and the fund signaled continued monetary assist tied to additional coverage steps.

IMF Notes Faster Growth

Reports notice that development is operating above earlier forecasts. The IMF now sees actual GDP development close to 4% for 2025. Local information present the financial system expanded 5.1% within the third quarter of 2025 in contrast with the identical quarter a 12 months earlier, led by development and remittance-driven consumption.

Remittances and stronger funding flows had been cited as key drivers. The fund stated greater confidence and improved fiscal numbers have helped create house for short-term rebuilding of reserves.

A Program Backed By Clear Conditions

Based on IMF releases, a staff-level settlement was reached with El Salvador in December 2024 for a program value about $1.4 billion. That association units fiscal targets and governance measures meant to revive sustainability.

Earlier, when the IMF accomplished the primary assessment and Article IV session in June 2025, a disbursement equal to roughly $118 million in SDRs was authorized. Reports added that authorities have enacted a brand new fiscal regulation, strengthened public procurement transparency, and superior governance measures for state corporations.

Key Reforms And Conditions

An actuarial examine on pensions has been printed, and steps to tighten anti-money-laundering guidelines had been mentioned with IMF employees. The fund has additionally pressed for limits on public sector publicity to cryptocurrencies; in accordance with worldwide protection, measures to scale back that publicity and to make non-public crypto use voluntary are into consideration.

What Comes Next For The Program

According to IMF briefings, the second assessment would require follow-through on prior actions and the assembly of fiscal targets. Continued disbursements rely on progress, and IMF groups stay involved with Salvadoran authorities to work by means of excellent points.

In parallel, the IMF has reiterated its place on El Salvador’s Bitcoin coverage. According to latest IMF statements, the fund desires the nation’s public sector Bitcoin holdings to stay capped, with no further purchases made beneath the present mortgage program.

The IMF has additionally pushed for a decreased state function in crypto-related actions, together with modifications tied to the Chivo pockets, arguing that limits are wanted to include fiscal and monetary dangers. Salvadoran officers have stated Bitcoin stays a part of their technique, although IMF paperwork present no confirmed improve in government-held Bitcoin since early 2025.

Featured picture from Unsplash, chart from TradingView

Similar Posts