PANews, October 2 - According to Reuters, the International Monetary Fund (IMF) approved a $139 million disbursement to El Salvador after granting a waiver over the government's breach of conditions restricting further bitcoin accumulation. The IMF Executive Board completed the second and third reviews of El Salvador's $1.4 billion Extended Fund Facility (EFF), allowing the immediate release of the funds.
The IMF said El Salvador's economic performance has been better than expected, helped by improved security and stronger investor confidence. The IMF noted that some program performance criteria were not met, including indicators related to bitcoin holdings. However, after El Salvador took strong corrective measures and renewed its commitments, the IMF approved the relevant waivers.
In September, IMF staff said documents provided by El Salvador showed that the bitcoin added after the first review came from private donations rather than public funds. The IMF said El Salvador has also made progress on anti-money laundering measures, fiscal transparency, and transferring majority ownership and control of the state-run digital wallet Chivo to private operators.