IMF approved a disbursement of 139 million USD to El Salvador: exemption granted for previous violations of restrictions on increasing Bitcoin holdings

According to a report by Reuters, the International Monetary Fund (IMF) has approved a disbursement of $139 million to El Salvador, following the institution's exemption regarding the Salvadoran government's violation of conditions limiting further accumulation of Bitcoin. The IMF Executive Board completed the second and third reviews of El Salvador's $1.4 billion Extended Fund Facility (EFF), allowing for the immediate release of these funds.

The IMF stated that El Salvador's economic performance has exceeded expectations, benefiting from improved security conditions and increased investor confidence. The IMF noted that some program performance standards were not met, including indicators related to Bitcoin holdings. However, after El Salvador took strong corrective measures and recommitted, the IMF approved the relevant exemption. In September, IMF staff indicated that documents provided by El Salvador showed that the Bitcoin acquired after the first review came from private donations rather than public funds. The IMF also stated that El Salvador has made progress in anti-money laundering measures, fiscal transparency, and transferring majority ownership and control of the state-owned digital wallet Chivo to private operators.