U.S. Embassy congratulates El Salvador after completing new reviews with the International Monetary Fund

A representative signs an International Monetary Fund financial cooperation document in the presence of the flags of El Salvador and the United States. (Illustrative image Infobae) The United States Embassy in El Salvador publicly congratulated the Salvadoran government following the conclusion of the second and third reviews of its financial agreement with the International Monetary Fund (IMF). The American diplomatic mission highlighted that the solid performance of the local economy and the implementation of structural reforms generate certainty in the markets, a key factor in attracting greater flows of foreign direct investment to the Central American country. The statement came in the context of the international organization's technical approval, which enabled an immediate disbursement of about 138 million dollars intended to reinforce the nation's macroeconomic stability. Through a statement released on its official channels, the diplomatic mission in San Salvador celebrated the favorable conclusion of this multilateral evaluation process. The decision of the IMF's Executive Board validates the commitments made under the Extended Fund Facility (EFF) program. This credit mechanism, originally agreed in February 2025 for a period of 40 months and a total of approximately 1.4 billion dollars, is intended to support fiscal consolidation, strengthen banking liquidity, and rebuild the Salvadoran state's external financial reserves. The completion of the technical evaluations immediately led to the release of 101.96 million Special Drawing Rights (SDRs), equivalent to the disbursement of liquidity for the public coffers. The United States Embassy in El Salvador congratulated the Central American country's government after the approval of the second and third reviews of its financial program with the IMF. (Photo: X/@USEmbassySV) According to the report from the Washington-based organization, El Salvador's economic activity exceeded initial projections thanks to the sustained improvement in public security conditions and the consequent recovery of private investors' confidence, which helped cushion the budget imbalances accumulated in previous fiscal years. For Salvadoran families and businesses, the IMF's backing functions as an international letter of recommendation confirming that the country's accounts are in order. When a global institution of this stature approves a government's work, it generates confidence in the markets and among foreign investors. That reassurance reduces the perceived risk of the country, allowing both the state and local businesses to obtain loans at lower interest rates and on better terms. Likewise, the arrival of the 138 million dollars in cash goes directly, without intermediaries, into the state's accounts. This money gives the government room to pay its most urgent debts and continue its daily projects without resorting to costly credit or cutting public works. In exchange for this support, the plan requires managing the budget carefully, avoiding unnecessary spending, and improving tax collection, on the condition of keeping intact the funds destined to fight poverty and build social infrastructure. A smartphone with a digital finance app is placed next to a printed document on macroeconomic regulation. (Illustrative image Infobae) The handling of Bitcoin and cryptocurrencies was another central point in the negotiations. To grant the money, the international organization requested that the state reduce its direct presence in this market. In response, the government handed over control of the Chivo digital wallet to a private company and promised not to buy Bitcoin with public funds again. Although the targets previously set for the purchase of virtual currency were not met, the organization's officials accepted the corrections presented by the Salvadoran authorities. To guarantee that the funds continue to arrive in the coming months, the country committed to making changes to the pension system and to the functioning of the public sector. As explained by the IMF's First Deputy Managing Director, Dan Katz, fulfilling these promises on time will be key to keeping the economy stable, protecting banks' money, and achieving growth that benefits society as a whole.