IMF Unlocks $139 Million for El Salvador, Warns Against Further Bitcoin Accumulation
El Salvador is set to receive $139 million from the International Monetary Fund (IMF) following a waiver related to the country's Bitcoin accumulation. This comes after the IMF board completed the second and third reviews under the $1.4 billion Extended Fund Facility, which paves the way for the immediate release of the funds.
The IMF had initially expressed concerns over El Salvador's decision to accumulate Bitcoin, citing that certain performance criteria were not met. However, a waiver was granted based on strong corrective measures and renewed commitments from the government.
The IMF emphasized that 'no further Bitcoin accumulation is envisaged beyond the documented donations.' The fund also urged the government to unwind its exposure to crypto and to keep its footprint in crypto minimal.
The IMF expects the El Salvador economy to expand 4.5 percent in the current year and 4 percent in 2027, driven by improved security and rising investor confidence. The fund's priority is to strengthen fiscal sustainability, rebuild external buffers, and enhance financial sector resilience.