IMF Releases $139 Million to El Salvador After Bitcoin Breach

The International Monetary Fund released $139 million to El Salvador on October 1, following the completion of the second and third reviews of a $1.4 billion Extended Fund Facility. The disbursement provides immediate liquidity to the Salvadoran treasury despite previous breaches of program performance criteria.

The IMF Executive Board granted waivers for these breaches, which concerned limits on the amount of Bitcoin the country could hold. The board accepted an explanation from the Government of El Salvador stating that the additional cryptocurrency was acquired through private donations rather than the use of public funds.

While the IMF forgave the past breach, it did not formally loosen its stance on sovereign Bitcoin holdings. The organization maintained existing caps on Bitcoin accumulation and signaled that it does not expect further accumulation beyond documented donations.