IMF Unlocks $140 Million for El Salvador After Bitcoin Reforms

The International Monetary Fund (IMF) has agreed to release a $140 million loan disbursement for El Salvador, following commitments related to Bitcoin. In September 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender alongside the U.S. dollar.

Concerned about the risks posed by Bitcoin's extreme volatility, the IMF secured changes in January 2025 that stripped Bitcoin of its status as mandatory legal tender. This change was a condition for El Salvador to receive $1.4 billion in loans over 40 months under an agreement reached in December 2024.

The country's economy is showing strong performance, with growth exceeding forecasts last year and expected to reach 4.5% in 2026. Investment, consumer spending, remittances, tourism, and capital inflows are all rising, according to the IMF.