Cointelegraph reports that the International Monetary Fund (IMF) is seeking to tighten restrictions on El Salvador's public sector purchases of bitcoin as part of a $1.4 billion deferred financing arrangement with the country. On March 3, the IMF submitted new requirements for fund expansion arrangements to El Salvador, including a technical memorandum of understanding, which clearly stated the conditions that "El Salvador's public sector shall not voluntarily accumulate bitcoins." The memorandum also calls for restrictions on the public sector's issuance of "any type of debt or tokenized instrument that is tied to or denominated in Bitcoin and constitutes a liability to the public sector." El Salvador Executive Director Méndez Bertolo emphasized in a side statement on February 26 that the IMF's Extended Fund Facility aims to "improve governance, transparency and resilience, and boost confidence and the country's growth potential." Bertolo said: "At the same time, bitcoin-related risks are being mitigated. The authorities revised the Bitcoin Law to clarify the legal nature of Bitcoin and remove the basic characteristics of legal tender. Accepting Bitcoin will be voluntary, taxes will be paid in U.S. dollars, and the public sector's role in Bitcoin projects will be limited." The plan is expected to attract "significant additional financial support" from the World Bank, the Inter-American Development Bank and other regional development banks.