dinero_admin The new Servicio Ampliado del Fondo (SAF) agreement approved by the International Monetary Fund (IMF) for El Salvador establishes a series of regulations and commitments that the country must comply with in order to access the 1.4 billion dollar financing. These regulations seek to guarantee macroeconomic stability, strengthen public finances, and improve governance and transparency. In addition, specific measures are included to address the risks associated with the use of Bitcoin as legal tender and strengthen financial regulation.
One of the main commitments is fiscal consolidation, which involves reducing the deficit and stabilizing public debt. The program establishes that the country’s primary balance should improve by 3.5% of GDP over the next three years, which will be achieved by rationalizing public spending, including adjustments in the public sector wage bill, without affecting investments in infrastructure and priority social spending. Greater efficiency in tax collection and in the administration of public resources is also expected.
Regarding Bitcoin, the IMF has requested El Salvador to take measures to mitigate the financial risks associated with the cryptocurrency. As part of the agreement, the acceptance of Bitcoin by the private sector is now voluntary, and tax payments can only be made in dollars. In addition, government involvement in Bitcoin-related economic activities will be phased out and regulation of digital assets will be strengthened to align with international standards.
Another key aspect of the agreement is the strengthening of international reserves and the stability of the financial system. A plan has been approved to increase banks’ liquidity buffers and improve financial regulation and supervision. In addition, new financial stability legislation seeks to guarantee a more solid environment for investment and financial inclusion, ensuring that the country is better prepared to face economic crises.
The IMF program emphasizes the importance of improving governance and transparency to generate confidence in private investment. Reforms have been implemented in anti-corruption legislation and public auditing processes, as well as measures to strengthen the fight against money laundering and terrorist financing.
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IMF approves US$1.4 billion in financing for El Salvador
