A. M. 
The IMF (International Monetary Fund) mission chief for El Salvador, Enrique Torres, issued a statement following virtual and in-person talks held over the past few months with salvadoran authorities regarding the second review of the 40-month agreement under the IMF’s Extended Fund Facility (EFF).
President Nayib Bukele reacted to the update with a message in X: “First little by little… and then, suddenly.” This indicates that the talks are ongoing.
Economic improvements
According to the IMF, the talks are progressing against a backdrop of improved macroeconomic performance, driven by increased confidence, record remittances, and expanding investment. The organization projects that real GDP will grow by around 4% this year, with favorable prospects for next year, strengthening the outlook for finalizing the program review.
On the fiscal front, the Fund highlighted the government’s strong commitment to consolidation, anticipating the achievement of the primary balance target by the end of 2025. Furthermore, it noted that the 2026 Budget is consistent with further deficit reduction, while expanding social spending, supporting reserve accumulation, and decreasing domestic debt, in line with the program’s goals.
Progress on pensions and the fiscal framework
The structural agenda also saw significant progress. The IMF highlighted the publication of an actuarial study on pensions and a Medium-Term Fiscal Framework, as well as financial stability reforms that strengthen bank resolution, crisis management, and deposit insurance schemes. Basel III regulations were also adopted to improve liquidity and stable funding, and a new AML/CFT law aligned with international standards was passed.
Sale of “Chivo”
In parallel, the Fund reported that negotiations for the sale of the state-owned electronic Chivo wallet are progressing well and that discussions on the Bitcoin project are ongoing, with an emphasis on transparency, protection of public resources, and risk mitigation.
The IMF indicated that it will maintain close contact with salvadoran authorities in the coming weeks with the aim of finalizing the technical agreement that will allow the completion of the second review of the EFF, a key step in consolidating the country’s macroeconomic and financial stability.
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