The International Monetary Fund (IMF) has finally greenlighted a deal that was informally approved last year, granting the Salvadorean government a $1.4 billion credit facility. The arrangement seeks to improve Salvadoran finances in exchange for implementing a program that limits Bukele’s administration’s bitcoin moves.

The fund’s Executive Board passed the $1.4 billion loan and executed an immediate disbursement of $113 million. This is only the first tranche of the agreement, with the remaining funds being distributed in the next 40 months.

Furthermore, the fund expects this commitment to entice other organizations to offer their support to the Salvadoran administration, estimating that the total support would reach over $3.5 billion.

In a press release, the fund finally offered more insight into the inner workings of the arrangement. Nigel Clarke, IMF’s deputy managing director and acting chair, stated that it recognized the advancements of El Salvador in the tourism and personal security areas.

Nonetheless, Clarke acknowledged the country is marred by high debt and weak financials, which are being addressed with these measures. Bitcoin is also a key part of the deal, with Clarke stating that risks derived from the cryptocurrency’s adoption are being addressed.

He declared:

Going forward, program commitments will confine government engagement in Bitcoin-related economic activities, as well as government transactions in and purchases of Bitcoin.

While the wording is confusing, this would imply that El Salvador would have to limit its bitcoin purchases to an agreed number or stop them entirely.

In line with the spirit of the deal, Bukele already spearheaded a reform that changed bitcoin’s tender status in the country, making its acceptance voluntary and withdrawing the possibility of paying taxes with it.

Read more: El Salvador Complies With IMF Requirements: Bitcoin Legal Tender Status Withdrawn

Nonetheless, El Salvador has continued to purchase bitcoin. On social media, President Bukele posted the country’s latest 7 BTC purchase after a seven-day hiatus.

Read more: Faith Rekindled: El Salvador Buys Bitcoin Again After One-Week Hiatus

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