IMF Releases $138 Million to El Salvador Despite Missed…
By Abdelaziz Fathi
AI summary of the source article
The International Monetary Fund has approved an immediate $138 million disbursement to El Salvador under its $1.4 billion Extended Fund Facility after completing the second and third reviews. The lender granted waivers for missed targets, including criteria linked to Bitcoin accumulation, determining that subsequent balance increases were financed through documented private donations rather than public resources. Beyond limiting state-funded Bitcoin purchases, the program entails reducing the government's role in the Chivo wallet, where majority ownership and operational control have shifted to a private operator. The IMF is also pressing El Salvador for broader fiscal reforms, strengthened liquidity buffers, and improved transparency surrounding public-sector crypto holdings.
Why it matters
The waiver reduces immediate sovereign financing uncertainty for El Salvador while signaling that continued IMF funding remains tied to limiting public fiscal exposure to Bitcoin and executing financial reforms.
Key facts
- The IMF approved an immediate $138 million disbursement to El Salvador under its $1.4 billion Extended Fund Facility.
- Waivers for missed Bitcoin targets were granted because subsequent holdings were attributed to documented private donations rather than public funds.
- Majority ownership and operational control of the state-created Chivo wallet have been transferred to a private operator.