El Salvador's pension debt grows 2.48%, exceeds $11.52 billion

El Salvador's state debt to private pension funds has continued to grow, accumulating to over $11.52 billion by April 2026, according to data from the state-run Central Reserve Bank (BCR). In the first four months of the year alone, the debt increased by $279.29 million, marking a 2.48% rise from December 2025.

Comparing the debt figures from April 2026 to April 2025 reveals a more substantial increase of $778.59 million, or 7.24%. The government has been accessing these pension funds through financial instruments such as Certificates of Provisional Obligations (COP), which currently total $3.12 billion. Additionally, there are $8.39 billion in Certificates of Transition Financing (CFT), a type of bond that has not paid capital or interest since a reform approved by the ruling party in late 2022.

These funds, drawn from deductions from public and private sector workers' salaries, are reportedly used to pay pensions for retirees from the public system, which was abandoned in the late 1990s and reformed in 2022. The International Monetary Fund (IMF) has previously noted that a significant portion, 89% of assets managed by pension fund administrators (AFPs) as of 2024, is held in public debt instruments. The IMF has also expressed concern that payments from the private pension system are being drawn from the Solidarity Guarantee Account (CGS), a common fund for AFP affiliates, used when individual account resources are depleted.

Salvadorans are awaiting a pension system reform that President Nayib Bukele's government committed to with the IMF. The deadline for presenting this reform passed on February 10th, adding to concerns about the country's long-term financial stability and the sustainability of its pension system.