El Salvador secures access to $138 million from IMF with Bitcoin limits intact

The International Monetary Fund completed the second and third reviews of El Salvador's $1.4 billion loan program on Oct. 1. The reviews allowed an immediate disbursement equivalent to SDR 101.96 million, or $138 million. The IMF board granted waivers for unmet performance criteria tied to Bitcoin accumulation after authorities took corrective measures and renewed their commitments.

The waivers keep financing available despite earlier breaches without changing the program's Bitcoin restrictions. The IMF said no further Bitcoin accumulation is envisaged beyond documented donations. The restriction prevents the government from resuming publicly funded Bitcoin purchases under the program.

El Salvador currently holds about 7,794.37 Bitcoin valued at roughly $666.1 million. Additions to government-linked wallets appear inconsistent with the IMF agreement. The IMF has previously distinguished between Bitcoin acquired with public money and coins received through documented donations. Reserve balances can therefore rise without indicating that President Nayib Bukele's government has restarted purchases. Higher Bitcoin prices increase the value of existing holdings, while the restrictions limit government-funded reserve expansion within the IMF program.

The IMF said fiscal consolidation was advancing broadly in line with program objectives. The IMF said reserve and liquidity targets had been comfortably met. The 40-month Extended Fund Facility was approved in February 2025 to support fiscal adjustment, stronger reserves and financial-sector reforms.

The IMF cited progress in reducing the state's direct role in crypto. The government has transferred majority ownership and control of the government-backed Chivo wallet to a private operator. However, the IMF said remaining public-sector exposure to Chivo should still be fully unwound.

The IMF wants El Salvador to improve disclosure of public-sector crypto holdings. The IMF also wants El Salvador to strengthen regulation and governance for digital-asset providers. The IMF wants El Salvador to amend its Digital Asset Issuance Law where necessary. These obligations remain unresolved alongside the commitment to avoid additional government-funded Bitcoin accumulation.

Future reviews will depend partly on whether El Salvador can document Bitcoin balance changes while completing the remaining Chivo unwind and transparency reforms. Unexplained Bitcoin accumulation could again require the government to seek waivers before accessing further program financing.