The International Monetary Fund (IMF) has positively assessed the first review of the extended funding agreement for El Salvador. As a result of this review, the country will receive $120 million, but only on the condition that it stops purchasing bitcoins.
This is reported by Finway
Since the program was approved by the government, Bitcoin reserves in El Salvador have increased by 89.03 BTC. The IMF and the government of El Salvador reached a preliminary agreement that lasts for 40 months. Following the approval of this agreement by the IMF’s executive board, El Salvador will receive nearly $120 million.
Positive Results of the First Review
The program was evaluated quite positively.
“Most of the program’s objectives set for the first review were easily achieved, and the implementation of structural indicators is progressing well,” said a joint statement from Rodrigo Cubeddu, Deputy Director of the Western Hemisphere Department, and Raúl Torres, head of the IMF mission in El Salvador.
Despite the agreement reached with the IMF, El Salvador continues to increase its Bitcoin reserves, which may contradict the conditions of the $3.5 billion loan program. The IMF officially emphasized that
“efforts will continue to ensure the stability of the amount of bitcoins held by the government of El Salvador,”
stressing that government entities should not purchase more cryptocurrency under the terms of the agreement.
Program Requirements and Their Implementation
It was also noted that the state must withdraw from participation in the Chivo app by the end of July. In March 2025, President Nayib Bukele’s government agreed to the IMF loan program, which included the repeal of Bitcoin’s status as legal tender. This means businesses are no longer required to accept it as payment. Another requirement was a ban on the accumulation of Bitcoin by the public sector.
However, despite these requirements, Bukele’s government continues to demonstrate an increase in Bitcoin reserves. Since March 4, following the announcement of the program’s conditions, El Salvador’s official crypto wallet has increased from 6,101.15 BTC to 6,190.18 BTC, which at the time of writing is approximately $674 million.
At the same time, the IMF noted a decrease in inflation, an improvement in the current account balance, and an increase in confidence in the country’s economy, despite external challenges.
“Timely implementation of the anti-corruption law and enhanced transparency are key to long-term financial stability,”
the IMF emphasized.
It is worth recalling that in January 2025, El Salvador amended its legislation to obtain a loan from the IMF, removing the requirement for private companies to mandatorily accept Bitcoin.