IMF Approves $138 Million for El Salvador After Waiver for Bitcoin Breach

The International Monetary Fund (IMF) has approved an immediate disbursement of $138 million to El Salvador, following a waiver for the country's breach of restrictions on further Bitcoin accumulation. The decision was made after El Salvador agreed to halt further Bitcoin accumulation under an IMF deal.

The IMF completed El Salvador's second and third reviews, authorizing the disbursement. The review process allows the program to proceed despite the missed criterion, but does not point to continued government-led Bitcoin accumulation as a program objective.

According to the IMF, economic activity exceeded expectations, supported by sustained improvements in security and investor confidence. Fiscal consolidation advanced broadly in line with the program, while reserve and liquidity targets were comfortably met.