dinero_admin The International Monetary Fund (IMF) has given a significant boost to El Salvador, approving a new disbursement of US$118 million as part of its US$1.4 billion total arrangement with the organization.
This decision, taken following the conclusion of the 2025 Article IV consultation and the first review of the arrangement under the IMF’s Extended Fund Facility (EFF), brings the total amount El Salvador has received to date under the program to US$231 million. The news comes a month after the multilateral announced a staff-level agreement, now confirming formal approval by the Executive Board.
The IMF Executive Board was full of praise for the salvadoran authorities, noting their strong commitment to the IMF-supported economic program and the satisfactory results achieved so far. The IMF report stresses that the salvadoran economy continues to show signs of robust growth, accompanied by moderate inflation and a notable reduction in the current account deficit. These macroeconomic improvements reflect the policies implemented by the government.
Nigel Clarke, Deputy managing director and acting President of the IMF, highlighted the country’s progress in fiscal consolidation, a key objective of the program. He also emphasized the strengthening of international reserves and the implementation of crucial structural reforms in areas such as governance and transparency.
Among the most notable achievements, the IMF welcomed the enactment of a new Fiscal Sustainability Law, which lays the groundwork for more prudent financial management. It also recognized the progress made in strengthening regulations in public procurement processes, facilitating access to financial information of major state-owned enterprises, and enabling access to public contracts.
The international organization also recognized El Salvador’s significant efforts to improve institutional capacity and public project management, which is expected to lead to a more efficient execution of infrastructure investments. According to the IMF, this is a key step to accelerate the country’s economic growth in the coming years.
