The IMF has approved a $138 million disbursement for El Salvador after waiving a missed condition tied to the government's Bitcoin accumulation. The waiver comes with a commitment that the state will not add to its Bitcoin holdings beyond donations already on the books, and that its Chivo wallet keeps moving into private hands.
The IMF Executive Board has approved a disbursement worth SDR 101.96 million ($138 million) for El Salvador, granting the government a waiver after it failed to meet a condition tied to Bitcoin accumulation. The board completed the second and third reviews of the country's Extended Fund Facility program on October 1.
Waiver Tied to Bitcoin Limits
The IMF said El Salvador's economy has performed better than expected, helped by improved security and stronger investor confidence. The country has also made progress reducing fiscal imbalances, and its reserve and liquidity buffers have strengthened while fiscal consolidation has broadly stayed on track. However, some program conditions were not met, including one tied to the government's Bitcoin accumulation. As a result, the IMF granted waivers based on corrective measures and renewed commitments from Salvadoran authorities.
Under the latest program commitments, El Salvador is not expected to accumulate more Bitcoin beyond documented donations. The IMF said: "No further Bitcoin accumulation is envisaged beyond the documented donations." The fund also said the government is working to reduce its role in Bitcoin-related activities, including plans to improve transparency around public-sector crypto holdings and strengthen rules governing crypto-asset companies.
Chivo's Government Role Shrinks
The government's Chivo digital wallet has also moved toward private control. According to the IMF, majority ownership and control of Chivo have been transferred to a private operator, and the remaining public-sector exposure should eventually be unwound.
El Salvador agreed to a 40-month IMF program in February 2025, which provides total access of about $1.4 billion, and the latest disbursement is part of that broader arrangement. The IMF said the country still needs further reforms to strengthen public finances, rebuild external reserves, and improve financial-sector resilience. Pension and civil service reforms are also expected to move forward after earlier delays.
The IMF called for stronger governance and greater transparency, pointing to public-sector reporting, beneficial ownership disclosures, asset declarations, and anti-money laundering rules as areas that remain crucial for maintaining economic stability.
Sources: IMF, CryptoPotato
Trading involves risk.
Risk Disclaimer
