IMF Approves $138M Disbursement to El Salvador After Bitcoin Waiver

The International Monetary Fund (IMF) has approved a disbursement of $138 million to El Salvador after granting the country a waiver for its failure to meet a condition related to Bitcoin accumulation. The IMF Executive Board completed the second and third reviews of El Salvador's Extended Fund Facility program on October 1.

El Salvador's economy has performed better than expected, helped by improved security and stronger investor confidence. However, some program conditions were not met, including the government's Bitcoin accumulation. The IMF granted waivers based on 'corrective measures and renewed commitments' from the Salvadoran authorities.

Under the latest program commitments, El Salvador is not expected to accumulate more Bitcoin beyond documented donations. The IMF also stated that the government is working to reduce its role in BTC-related activities, which includes plans to improve transparency around public-sector crypto holdings and strengthen rules governing crypto-asset companies.