In addition, the IMF notes that with the help of a Rapid Financing Instrument disbursement (DEG US$287.2 million and US$389 million) approved in april 2020, they are supporting a rapid reactivation. Also, the economy contracted by 7.9% in 2020, and is projected to grow by about 10% in 2021 and 3.2% in 2022.

In this context, vulnerabilities related to public debt emerged. Persistent fiscal deficits and high debt service are generating high and growing financing needs.

The fiscal deficit is projected at 5.8% of Gross Domestic Product (GDP) in 2021 and approximately 5% of GDP in 2022. Under current policies, public debt would rise to about 96% of GDP in 2026, on an unsustainable trajectory.

The IMF notes that the adoption of Bitcoin as legal tender in El Salvador poses serious risks to financial and market integrity, financial stability and consumer protection. It may also result in contingent fiscal liabilities.

Finance minister, Alejandro Zelaya, said in an interview that the IMF recognizes advances in economic growth, pandemic management and financial inclusion, but also highlights the country's problems.

Zelaya said that the Public Investment Program 2022, for US$1.7 billion, will complement the whole strategy of attracting investment, a single alternative is not the solution for the salvadoran economy.

He said that the limit for short-term debt issuance per budget has been reduced from 30% to 25%, with the expectation of reducing it year by year to 15%.