El Salvador · ECONOMY

The International Monetary Fund and El Salvador have agreed on a staff-level deal. It could release about US$140 million once the board approves.

The IMF headquarters in Washington. El Salvador has reached a staff-level agreement worth about US$140 million. (Photo: The Rio Times archive.)

El Salvador has reached an IMF deal that could bring about US$140 million in new funding. The staff-level agreement, announced on 3 September 2026, still needs approval from the IMF’s executive board.

What the IMF Deal Means

The International Monetary Fund (IMF) and El Salvador have reached a staff-level agreement. This is a technical step, not a final payment.

A staff-level agreement means IMF experts and the country’s officials have agreed on a plan. The IMF’s executive board must still approve it.

IMF missions negotiate this kind of agreement after reviewing a country’s economic data on site. Staff then write a report for the Executive Board to consider.

Details of the Agreement

The agreement covers the combined second and third reviews of El Salvador’s Extended Fund Facility (EFF). This is a 40-month loan programme.

If approved, El Salvador could access about US$140 million. That is equal to SDR 101.96 million, the IMF’s unit of account.

The full EFF programme is worth about US$1.4 billion, equal to SDR 1,033.92 million. That is roughly 360 percent of El Salvador’s IMF quota.

Board Approval Still Pending

The IMF says the deal is ‘subject to approval by the IMF Executive Board.’ Disbursement also depends on completing agreed prior actions.

Prior actions are specific steps the country must take before the money is released. They are part of the conditions of the loan.

Bitcoin Commitments

The IMF said El Salvador’s Bitcoin accumulation since 27 June 2025 came from private donations. No public funds were used for that accumulation.

IMF staff said no further Bitcoin accumulation beyond documented donations is expected. The Fund did not describe this as a formal pledge by El Salvador.

El Salvador held about 7,762 Bitcoin in its reserves as of early September 2026. Acceptance of Bitcoin by businesses became voluntary under a 2025 legal change.

Chivo Wallet Changes

Public participation in the Chivo Bitcoin wallet has been reduced. Most ownership and control have moved to a private operator.

This change is part of the understandings with the IMF. It aims to reduce the public sector’s role in crypto activities.

The December 2024 agreement had called for El Salvador to sell or wind down Chivo. The government instead transferred majority control to a private firm, keeping a minority stake.

Regulatory Reforms

El Salvador and the IMF agreed to modernize the legal and regulatory framework for digital assets. They also plan to strengthen governance for public crypto holdings.

These reforms are meant to manage risks. They are part of the conditions tied to the IMF deal.

IMF staff also list the reforms under the programme’s wider financial-sector stability goals. They sit alongside the separate fiscal and governance conditions.

What Is the Extended Fund Facility?

The Extended Fund Facility (EFF) is an IMF loan programme for countries with balance-of-payments problems. It typically runs three to four years, with repayment stretched over four-and-a-half to ten years.

El Salvador’s EFF is a 40-month programme. The staff-level agreement of 3 September 2026 covers its second and third reviews.

Those reviews check whether the country has met the conditions set in the programme.

What Are Special Drawing Rights?

Special Drawing Rights, or SDRs, are an international reserve asset created by the IMF. They are not a currency but can be exchanged for usable currencies like US dollars or euros.

The potential disbursement is about US$140 million, which equals SDR 101.96 million. That is about 0.4 percent of El Salvador’s 2025 GDP.

An SDR’s value is set daily from a basket of five major currencies. That basket includes the US dollar, euro, yuan, yen and British pound.

The port of Acajutla in El Salvador. The programme sets fiscal targets the country must keep meeting. (Photo: The Rio Times archive.)

How Does the IMF Board Approval Work?

The IMF Executive Board has 25 directors representing member countries. They meet to approve loan reviews and disbursements.

After a staff-level agreement, IMF staff prepare a Board report. The Board must approve it, and the country must complete prior actions before funds are released.

Board approval of a review also rests on measurable performance criteria, not only prior actions. Missing either can delay a disbursement.

What Are Prior Actions?

Prior actions are conditions El Salvador must meet before the IMF board approves the loan. For this agreement, the specific actions have not been published.

They differ from the numeric targets checked at each review. Prior actions must be finished before the Board vote, not after it.

What Did the IMF Mission Chief Say?

Reports reviewed for this article do not quote the IMF mission chief for El Salvador directly on this deal. The IMF’s mission chief for the country, Mr Torres, was not quoted by name in the 3 September 2026 statement.

IMF staff said ‘no further accumulation beyond documented donations is expected.’ That line appeared in the update issued on 3 September 2026.

What Happened Before This Agreement?

El Salvador adopted Bitcoin as legal tender in 2021. The IMF was cautious about this policy.

In December 2024, IMF staff and El Salvador reached a staff-level agreement on the new EFF programme. The IMF Executive Board approved it on 26 February 2025.

The first review was completed in June 2025, releasing further funds. This staff-level agreement now covers the combined second and third reviews.

What Earlier Reviews Found

IMF staff reached agreement on the first review on 27 May 2025. The Executive Board completed it on 27 June 2025, releasing about US$118 million.

The IMF said most targets set for that first review were comfortably met. It also said the agreed structural benchmarks were progressing well.

The Fund reported El Salvador’s economy grew by about 3.9 percent in 2025. That growth outpaced earlier forecasts for the year.

Fiscal Targets and Governance Reforms

The programme targets a 3.5 percentage-point improvement in El Salvador’s primary fiscal balance over three years. It also calls for the country to rebuild its foreign currency reserves.

Governance conditions include stronger transparency and anti-corruption safeguards across public institutions. Pension reform and anti-money-laundering rules are also among the structural benchmarks.

El Salvador secured a separate US$500 million loan from the Inter-American Development Bank in March 2025, to support its budget. The IMF says its own programme should help catalyze over US$3.5 billion more from other lenders.

What Are the Next Steps?

The next step is for the IMF Executive Board to review the staff-level agreement. The Board will decide whether to approve the reviews and the disbursement.

The Board meeting’s exact timing is not yet announced.

Frequently Asked Questions

What is a staff-level agreement with the IMF?

A staff-level agreement is a technical deal between IMF staff and a country’s authorities. It is not final until the IMF’s executive board approves it.

How much money could El Salvador receive?

El Salvador could receive about US$140 million. This amount is subject to board approval and prior actions.

What are the conditions of the IMF deal?

Conditions include fiscal targets and Bitcoin-related measures. The IMF expects no further Bitcoin accumulation beyond the private donations already recorded.

When will the money be paid?

The money will be paid only after the IMF board approves the agreement. The board meeting date has not been announced.

Sources: International Monetary Fund; CryptoBriefing; Crypto.news; Coinfomania.