IMF approves $139 million in funding for El Salvador, granting an exemption for its earlier violation of limits on increasing Bitcoin holdings.
1 hours ago
According to Reuters, the International Monetary Fund (IMF) has approved a $139 million disbursement to El Salvador, after granting a waiver to the country for violating conditions related to limits on further Bitcoin purchases. The IMF Executive Board completed the second and third reviews of El Salvador’s $1.4 billion Extended Fund Facility (EFF), allowing the immediate disbursement of the funds. The IMF noted that El Salvador’s economic performance has exceeded expectations, driven by improved security conditions and increased investor confidence. The IMF added that some planned performance criteria were not met, including the metric related to Bitcoin holdings. However, the IMF approved the waiver after El Salvador took strong corrective actions and renewed its commitments. In September, IMF staff stated that documents provided by El Salvador showed the additional Bitcoin the country acquired after the first review came from private donations, not public funds. The IMF also said El Salvador has made progress in anti-money laundering measures, fiscal transparency, and transferring most ownership and control of the state-owned digital wallet Chivo to private operators.
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