IMF Says El Salvador Is Taking Economic Wonders Seriously 😜

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Behold, according to that astute oracle of fiscal orthodoxy, the IMF, El Salvador, once famed for its volcanoes and not its vehemently enthusiastic graduate economists, has made hilariously small yet supposedly monumental progress on its reform program. As if the cosmic jigsaw puzzle of global economies wasn’t puzzling enough, their growth is supposedly outstripping prediction, like a chili-eating competition in the former Spanish colony. 🌐✨

The IMF, in all its whimsical wisdom, has said that the ongoing discussions for the second review of the country’s 40-month Extended Fund Facility program are still going on. Authorities are working diligently to meet benchmarks, which-if pledges like these are kept up-may perhaps result in the kind of economic growth not seen since the last time your Tupperware lids fit properly. Downward, upward, the forecasts continue to be revised with the kind of enthusiasm typically reserved for paper airplanes. 🦆

IMF Concludes Madness is, in Fact, Growth

It turns out, reports state with assurance typically reserved for haunted houses, that El Salvador’s GDP growth is “running above earlier forecasts”. Make no mistake; this isn’t just faster-it’s laughably faster, like a Volkswagen Beetle in a Formula 1 race, nearing “real GDP growth near 4% for 2025”. Q3 of this year witnessed the economy expanding a robust 5.1% over the same quarter last year. This was apparently driven by the ancient arts of construction and remittance-driven consumption. Militant finance failure werewolves around with enthusiasm. 🐺

Remittances and stronger investment flows were cited as key drivers. And, like hidden treasures with a bad plastic smell, higher confidence and improved fiscal numbers have somehow miraculously created the space for short-term rebuilding of reserves. 🏟️

Gradually, then suddenly.
– Nayib Bukele (@nayibbukele) December 22, 2025

Program Backed By Indeedly Clear Conditions

Deep in the cryptic communications of IMF releases, a staff-level agreement was reached with El Salvador in December 2024 for a program worth about $1.4 billion. That arrangement sets fiscal targets and governance measures meant to restore sustainability-assuming such a thing is more than just a puff of llama smoke. 🦙

Previously, when the IMF completed the first review and Article IV consultation in the oddly random month of June 2025 (could there be a more significant month?), a disbursement equivalent to roughly $118 million in SDRs was approved. Reports added that authorities have seized this opportunity to enact a new fiscal law, strengthen public procurement transparency, and advance governance measures for state firms, such as how to successfully avoid bureaucracy. 🧙‍♂️

El Salvador economic chart

Key Reforms And Conditions: A Saga of Wonders, Woes, and Weirdness

As if they were doing a Herculean Riddle, an actuarial study on pensions has been published. And steps to tighten anti-money-laundering rules were discussed with IMF staff-because obviously, money laundering is only fun in theory and not in practice. The fund has also pressed for limits on public sector exposure to cryptocurrencies; according to international coverage, measures to reduce that exposure and to make private crypto use voluntary are under consideration. Is it a joke? Someone pinch me-or better yet, don’t, because the economy might do it for you. 🤪

What Comes Next For The Program: Back to the Future

According to the arcane arts and future-telling demanded by briefings, the second review needs action on prior actions and the meeting of fiscal targets, as logical as needing a fork to eat soup. Continued disbursements depend on progress. IMF teams remain in contact with Salvadoran authorities to work through outstanding issues, like whether financial stability will ever truly resemble the mythical ideal of a butterfly’s economic status. 🦋

In parallel, the IMF has reiterated its position on El Salvador’s Bitcoin policy. According to recent IMF statements, the fund wants the country’s public sector Bitcoin holdings to remain capped, with no additional purchases made under the current loan program-because why let financial freedom breathe, right? The IMF has also pushed for a reduced state role in crypto-related activities, including changes tied to the Chivo wallet, arguing that limits are needed to contain fiscal and financial risks. Salvadoran officials have said Bitcoin remains part of their strategy, though IMF documents show no confirmed increase in government-held Bitcoin since early 2025. Bitcoin could be a digital unicorn-it’s probably not real, and definitely not growing. 🦄

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2025-12-24 03:11