The International Monetary Fund (IMF) has reached a staff-level agreement with El Salvador to provide a $1.4 billion Extended Fund Facility (EFF) arrangement to support the government’s reform agenda. The agreement, subject to IMF Executive Board approval, aims to strengthen fiscal and external sustainability through a growth-friendly fiscal consolidation plan.
The program will focus on improving governance, transparency, and resilience, including measures to enhance fiscal responsibility, improve reporting of debt, and cut red tape. It will also prioritize strengthening the efficiency of the civil service, pension system, and revenue mobilization.
To mitigate Bitcoin-related risks, the agreement makes acceptance by private sector voluntary and limits public sector participation. The program includes measures to boost confidence, such as improving governance, transparency, and resilience, and to create conditions for stronger and more inclusive growth.
The IMF’s Deputy Director of the Western Hemisphere Department and Mission Chief for El Salvador will present a report on the agreed-upon program to the IMF’s Executive Board for discussion and decision. The agreement is expected to be approved by early-February once the agreed prior actions have been implemented.
Source: https://www.imf.org/en/News/Articles/2024/12/18/pr-24485-el-salvador-imf-reaches-staff-level-agreement-on-an-eff-arrangement