IMF Approves $138M for El Salvador After Bitcoin Accumulation Waiver
The International Monetary Fund (IMF) has approved a $138 million disbursement for El Salvador after granting the government 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. The country's economy has performed better than expected, helped by improved security and stronger investor confidence. El Salvador has made progress in reducing fiscal imbalances, and its reserve and liquidity buffers have strengthened.
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 Bitcoin-related activities, including plans to improve transparency around public-sector crypto holdings and strengthen rules governing crypto-asset companies.