A. M. The staff of the International Monetary Fund (IMF) and the salvadoran authorities have reached a staff-level agreement on the first review of the 40-month Extended Fund Facility (EFF) program. This agreement, subject to final approval by the IMF Executive Board, would enable El Salvador to receive a disbursement of nearly $120 million, representing a significant support to the country’s economic stability and growth.
Program performance has been described as strong, with key fiscal and reserve targets met by favorable margins. In addition, substantial progress on the ambitious reform agenda has been highlighted, especially in key areas such as governance, transparency, and financial resilience. This progress is critical to address macroeconomic imbalances and lay the foundation for more robust and sustainable growth in the future.
Continued implementation of the fiscal consolidation plan and the structural agenda is seen as crucial to anchoring economic stability and creating an environment conducive to stronger growth.
The IMF and the salvadoran authorities share the understanding that strong program implementation and agile policy formulation are essential, especially in the context of increasing global uncertainties.
The IMF staff has expressed its appreciation to the Salvadoran authorities for the excellent collaboration and constructive discussions during this process. This agreement not only implies the potential disbursement of funds, but also reinforces international confidence in the country’s economic direction, promoting a more attractive environment for future investment and the overall development of El Salvador.
