IMF Hands El Salvador $138M After Granting Bitcoin Waivers

El Salvador received a significant boost to its economy after the International Monetary Fund (IMF) approved the disbursement of $138 million. This amount comes from the country's $1.4 billion financing program, which is designed to support El Salvador's economic development. The IMF's Executive Board completed the second and third reviews under El Salvador's 40-month Extended Fund Facility (EFF) arrangement, despite some performance criteria being missed.

The IMF granted waivers to El Salvador for missing certain performance criteria, including on the Bitcoin accumulation front. The agency noted that El Salvador has made progress in financial sector reforms, fiscal transparency, AML/CFT reforms, and the transfer of majority ownership and control of the Chivo Bitcoin wallet to a private operator.

Efforts will continue to reduce the state's involvement in Bitcoin-related activities, strengthen crypto-asset regulation and governance, and enhance transparency regarding public-sector crypto-asset holdings. The IMF emphasized that no further Bitcoin accumulation is envisaged beyond the documented donations.