IMF Agreement Paves Way for $140M in Aid for El Salvador
El Salvador has cleared a significant hurdle in its ongoing relationship with the International Monetary Fund (IMF) by reaching a staff-level agreement for $140 million in aid. The agreement covers the country's second and third reviews under its 40-month Extended Fund Facility, which was approved in early 2025 with a total value of $1.4 billion.
The EFF program targets a 3.5% of GDP improvement in the primary balance over three years, as well as reserve accumulation and governance reforms, including transparency and anti-corruption measures. El Salvador has made progress on multiple fronts, including pension reform, which was a major sticking point in previous reviews.
The agreement also includes measures to mitigate risks associated with Bitcoin, which is voluntary for businesses and consumers under the terms of the EFF program. The IMF framework reflects the fund's cautionary stance toward sovereign crypto adoption, as El Salvador holds 7,762 BTC in its national treasury built through daily purchases.