IMF Approves $139 Million Disbursement to El Salvador, Urges Halt on Bitcoin Accumulation
- The IMF approved a $139 million disbursement to El Salvador under a $1.4 billion financing program.
- A waiver was granted after El Salvador did not meet performance criteria related to further bitcoin accumulation.
- The IMF urged the government to cease increasing state bitcoin holdings and reduce its involvement in the cryptocurrency sector.
- El Salvador’s economic growth is projected at 4.5% for the current year, driven by improved security and investor confidence.
- The government has transferred most control of the Chivo cryptocurrency wallet to a private operator as part of scaling back its crypto involvement.
The IMF’s decision reflects ongoing adjustments in El Salvador’s approach to bitcoin, emphasizing fiscal sustainability and reduced state roles in cryptocurrencies following earlier commitments from President Nayib Bukele’s administration.
With the approval of $139 million, the IMF continues to support El Salvador while calling for no further accumulation of bitcoin beyond documented donations.
