IMF completes second and third reviews of El Salvador's Extended Fund Facility programme, releasing $138M in immediate disbursements.
Regulation & Gov ·
The International Monetary Fund has completed its second and third reviews of El Salvador's Extended Fund Facility programme, triggering an immediate disbursement of $138 million. This milestone marks progress in the country's engagement with the IMF following a broader fiscal and monetary reform framework agreed between the two parties.
El Salvador's relationship with the IMF centers on a structural adjustment program that has reshaped its approach to Bitcoin integration. The country, which adopted Bitcoin as legal tender in 2021, subsequently revised its strategy to align with IMF requirements, making cryptocurrency acceptance voluntary rather than mandatory for businesses. This recalibration reflects the tension between El Salvador's Bitcoin-first positioning and external financial institution demands for orthodox macroeconomic governance.
The completion of both reviews in sequence suggests IMF confidence in El Salvador's compliance trajectory, though the full scope of conditions attached to remaining tranches remains unclear. The fund's approval pathway typically involves phased disbursements tied to specific policy benchmarks; whether additional reviews or conditions shape future payments has not been detailed in available statements.