The International Monetary Fund (IMF) has agreed to disburse approximately $120 million to El Salvador following the initial review of a $1.4 billion Extended Fund Facility loan signed last year.
This payment is contingent on El Salvador meeting specific conditions related to its Bitcoin policy, including maintaining current Bitcoin holdings and ending government involvement with the Chivo wallet by July.
Despite the IMF’s requirements, El Salvador has continued to purchase Bitcoin, adding 30 BTC recently and raising total reserves to 6,190.18 BTC.
President Nayib Bukele stated the government plans to keep buying one Bitcoin daily as part of its treasury management, with an unrealized profit of $386 million reported.
The IMF’s Western Hemisphere Department acknowledged El Salvador’s compliance with performance criteria earlier this year.
Experts suggest the country should maintain compliance by allowing Bitcoin purchases through non-governmental channels.
The IMF’s agreement involves a disbursement tied to El Salvador’s Bitcoin policy compliance and existing loan frameworks.
Approval processes and background on funding terms provide key context for this financial arrangement.