El Salvador Secures $138 Million IMF Disbursement After Bitcoin Waiver
The IMF has released $138 million to El Salvador following a review of its loan program, granting a waiver for missed criteria related to the government's Bitcoin accumulation.
El Salvador has gained access to $138 million in funding from the International Monetary Fund following the completion of the second and third reviews of its $1.4 billion loan program. The IMF board approved the disbursement on Oct. 1, which is equivalent to SDR 101.96 million.
The approval included a waiver for unmet performance criteria linked to the country's Bitcoin accumulation. While the waiver allows the financing to proceed, it maintains existing constraints on the government's ability to use public funds for further Bitcoin purchases. The IMF stated that no additional accumulation is expected beyond documented donations.
El Salvador currently holds approximately 7,794.37 Bitcoin, with a valuation of about $666.1 million. The IMF continues to distinguish between coins acquired through public spending and those obtained via donations, a distinction that remains a focal point for future reviews of the country's reserve transparency.
The IMF noted that El Salvador has made progress in reducing the state's direct involvement in the crypto sector. The government has shifted majority control of the Chivo wallet to a private operator, though the IMF indicated that remaining public-sector exposure should be fully unwound.
Looking ahead, future program reviews will focus on the government's ability to document changes in its Bitcoin holdings, the completion of the Chivo wallet transition, and broader transparency reforms. The IMF has also called for strengthened regulation of digital-asset providers and potential amendments to the Digital Asset Issuance Law.
These ongoing requirements mean the government faces limitations on expanding its Bitcoin reserves while remaining within the parameters of the 40-month Extended Fund Facility, which was approved in February 2025.
