IMF reaches staff-level agreement for $140M aid to El Salvador

El Salvador just cleared a significant hurdle in its ongoing relationship with the International Monetary Fund. IMF staff have reached a staff-level agreement on the country’s second and third reviews under its 40-month Extended Fund Facility, unlocking roughly $140 million in additional funds once the Executive Board gives its stamp of approval. What the deal actually covers The EFF arrangement was approved in early 2025 with a total value of $1.4 billion, equivalent to SDR 1,033.92 million, or 360% of El Salvador’s IMF quota. The first review was completed successfully, resulting in an initial disbursement of roughly $113 million to $120 million. The second and third reviews hit delays, originally planned for 2025 and early 2026, as issues like pension reform and structural benchmarks remained unresolved. As of August 2026, only the first review had been publicly finalized, leaving subsequent disbursements in limbo. Beyond the $140 million in direct funds, the broader EFF program is designed to catalyze more than $3.5 billion in additional multilateral support. The Bitcoin balancing act Under the terms of the EFF, El Salvador has made Bitcoin acceptance voluntary for businesses a...