IMF Waives El Salvador's Bitcoin Breach, Approves $139 Million Disbursement

The International Monetary Fund (IMF) has granted El Salvador a waiver for breaching a condition related to Bitcoin purchases, allowing the country to receive a $139 million disbursement. The waiver was granted despite El Salvador missing some performance criteria related to Bitcoin accumulation, but the IMF noted that the country had taken corrective measures and renewed its policy commitments.

The IMF also reaffirmed that any further Bitcoin accumulation beyond officially confirmed donated amounts must stop. This is a key point of contention, as El Salvador has continued to buy Bitcoin at the government level since adopting the token as legal tender alongside the US dollar in 2021.

The IMF's decision is a positive development for El Salvador's economy, which is projected to grow 4.5% this year and 4% in 2027, according to the fund. The IMF cited improved public security and a recovery in investor sentiment as key drivers of this growth.

The IMF plans to continue using the program to strengthen El Salvador's fiscal health, build external buffers, bolster financial-system stability, and improve governance and transparency.