The International Monetary Fund approved a $139 million disbursement to El Salvador after granting a waiver for the government's breach of conditions restricting further bitcoin accumulation. The IMF Executive Board completed the second and third reviews of the country's $1.4 billion Extended Fund Facility, enabling the immediate release of funds despite unmet performance criteria related to bitcoin holdings.
The IMF cited better-than-expected economic performance driven by improved security and stronger investor confidence as key factors in the approval. Staff determined that bitcoin acquired after the first review originated from private donations rather than public funds, while El Salvador implemented corrective measures and renewed commitments to address program deviations.
El Salvador has also advanced structural reforms including anti-money laundering measures, fiscal transparency improvements, and the transfer of majority ownership and control of the state-run Chivo digital wallet to private operators. These developments satisfied IMF requirements for continued financial support under the extended facility arrangement.
IMF Approves $139M Disbursement to El Salvador Despite Bitcoin Accumulation Breach
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