The IMF has agreed that El Salvador meets the required conditions to continue receiving financial disbursements under a credit agreement signed in February. The fund confirmed that El Salvador's performance in implementing the program has been strong, with authorities successfully applying the agreed economic reform plan. Most of the targets set for the first review have been met, and structural benchmarks are being implemented well.
Pending approval from the executive board of the fund, El Salvador will be able to receive an additional payment of $120 million as part of the agreement to help the country stabilize its economy. The fund also praised El Salvador's economic performance despite external challenges, noting continued economic growth supported by improved confidence and strong remittance flows.
The IMF's stance on El Salvador's Bitcoin policy
Despite El Salvador's continued purchase of Bitcoin, which seems to exceed restrictions on government transactions in the cryptocurrency, the review did not record any violations. Halting these purchases was one of the fund's conditions for concluding this deal. However, the fund mentioned that efforts will be made to ensure that the total government ownership of Bitcoin remains unchanged, emphasizing the need to end the state's involvement in the official Chivo Bitcoin wallet.
El Salvador's ongoing commitment to buying Bitcoin despite the agreement with the fund
El Salvador has remained committed to buying Bitcoin, having added dozens of units to its reserves after the fund's agreement. Uncertainty still surrounds the strategy followed by President Nayib Bukele to continue increasing the country's Bitcoin reserves while simultaneously adhering to the IMF agreement.
