IMF Approves $138 Million Disbursement for El Salvador, Cautions Against Further Bitcoin Accumulation
The International Monetary Fund (IMF) has completed its second and third reviews of El Salvador's lending program, leading to an immediate disbursement of approximately $138 million. This approval comes despite El Salvador breaching a condition related to Bitcoin accumulation. The IMF granted waivers for these breaches, citing strong corrective measures and renewed commitments from the Salvadoran government. The fund explicitly stated that no further Bitcoin accumulation is anticipated beyond documented donations. The IMF has urged President Nayib Bukele's administration to cease adding to its Bitcoin holdings and to reduce the state's involvement in cryptocurrency. As part of these corrective actions, the government has transferred majority ownership and control of the Chivo crypto wallet to a private company, and the IMF recommends fully unwinding any remaining state exposure to crypto. El Salvador adopted Bitcoin as a national currency in 2021, alongside the U.S. dollar, and has since accumulated a sign...
