Based on an IMF workers assertion launched on December 22, 2025, El Salvador has made measurable progress on its reform program and is seeing quicker financial development than earlier anticipated.
The IMF stated discussions on the second overview of the nation’s 40-month Prolonged Fund Facility program are ongoing as authorities work to fulfill agreed benchmarks. Development forecasts had been revised upward, and the fund signaled continued monetary assist tied to additional coverage steps.
IMF Notes Sooner Development
Reviews observe that development is operating above earlier forecasts. The IMF now sees actual GDP development close to 4% for 2025. Native knowledge present the economic system expanded 5.1% within the third quarter of 2025 in contrast with the identical quarter a 12 months earlier, led by development and remittance-driven consumption.
Remittances and stronger funding flows had been cited as key drivers. The fund stated larger confidence and improved fiscal numbers have helped create area for short-term rebuilding of reserves.
Step by step, then instantly. https://t.co/MWP0avqlDE pic.twitter.com/hYYONaRLcI
— Nayib Bukele (@nayibbukele) December 22, 2025
A Program Backed By Clear Situations
Based mostly on IMF releases, a staff-level settlement was reached with El Salvador in December 2024 for a program price about $1.4 billion. That association units fiscal targets and governance measures meant to revive sustainability.
Earlier, when the IMF accomplished the primary overview and Article IV session in June 2025, a disbursement equal to roughly $118 million in SDRs was authorized. Reviews added that authorities have enacted a brand new fiscal legislation, strengthened public procurement transparency, and superior governance measures for state companies.
Key Reforms And Situations
An actuarial examine on pensions has been revealed, and steps to tighten anti-money-laundering guidelines had been mentioned with IMF workers. The fund has additionally pressed for limits on public sector publicity to cryptocurrencies; in response to worldwide protection, measures to scale back that publicity and to make personal crypto use voluntary are into consideration.
What Comes Subsequent For The Program
Based on IMF briefings, the second overview would require follow-through on prior actions and the assembly of fiscal targets. Continued disbursements rely on progress, and IMF groups stay in touch with Salvadoran authorities to work by means of excellent points.
In parallel, the IMF has reiterated its place on El Salvador’s Bitcoin coverage. Based on latest IMF statements, the fund desires the nation’s public sector Bitcoin holdings to stay capped, with no further purchases made below the present mortgage program.
The IMF has additionally pushed for a lowered state function in crypto-related actions, together with modifications tied to the Chivo pockets, arguing that limits are wanted to comprise fiscal and monetary dangers. Salvadoran officers have stated Bitcoin stays a part of their technique, although IMF paperwork present no confirmed enhance in government-held Bitcoin since early 2025.
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