El Salvador Secures $138 Million IMF Funding, Halts Bitcoin Purchases

El Salvador has secured an additional $138 million in funding from the International Monetary Fund (IMF) as part of its 40-month, $1.4 billion Extended Fund Facility arrangement.

The IMF's Executive Board approved the immediate disbursement of the funds despite El Salvador's failure to meet some performance criteria, including targets related to Bitcoin accumulation.

The IMF has waived these criteria, citing corrective measures taken by the country and its reaffirmation of related commitments.

As part of its financial-sector reforms, El Salvador has transferred majority ownership and operational control of the Chivo Bitcoin wallet to a private operator, scaling back state involvement in Bitcoin-related activities.

The IMF has stated that no further Bitcoin accumulation is planned apart from verified donated amounts, and that the government did not purchase additional Bitcoin using public funds.