The International Monetary Fund (IMF) has approved a $1.4 billion extended arrangement for El Salvador, with an immediate disbursement of $113 million. The program aims to address macroeconomic imbalances, strengthen governance, and boost El Salvador's growth prospects. It includes measures to improve the primary balance, with a focus on wage bill rationalization. The arrangement specifically addresses Bitcoin-related risks, including legal reforms and gradually withdrawing from crypto e-wallet participation. The program also includes improvements to governance and transparency, enhanced procurement processes, and increased banks' liquidity buffers. IMF financing will support government buffers and central bank reserves.



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