IMF Approves $138 Million for El Salvador After Bitcoin Accumulation Waiver
IMF releases funds despite Bitcoin rule breach
The International Monetary Fund approved an immediate payment of approximately $138 million to El Salvador on October 1, 2026, after granting waivers for missed program conditions including a limit on Bitcoin accumulation.
The decision came as the IMF completed its second and third reviews of El Salvador's Extended Fund Facility arrangement. The waiver relief was based on what the fund described as strong corrective measures and renewed commitments from the Salvadoran government.
Key numbers from the agreement
- $138 million immediate disbursement approved
- Part of a roughly $1.4 billion, 40-month program approved February 26, 2025
- 101.96 million Special Drawing Rights converted to dollars
- Zero ceiling was the original limit on voluntary Bitcoin accumulation
What the IMF statement says
The IMF's October 1 board statement included a key constraint on future Bitcoin purchases: no further accumulation is envisaged beyond documented donations. This represents a continued restriction rather than complete removal of limits.
Earlier staff assessment on September 3 confirmed that Bitcoin accumulation observed since the first review reflected private donations. The IMF verified that no public resources had been used for these purchases.
The October board statement does not specify the quantity of bitcoins involved in the accumulation that breached program conditions.
Chivo wallet status
The IMF reported that majority ownership and control of Chivo, the government's crypto wallet, had transferred to a private operator. The government retained a minority stake and custodial responsibilities for customer assets.
IMF First Deputy Managing Director Dan Katz welcomed the transfer but stated that residual public-sector exposure should be fully unwound.
Program compliance status
The IMF said fiscal consolidation had advanced broadly in line with program objectives. Reserve and liquidity targets were comfortably met, according to the fund's statement.
Original program documents required taxes to be paid only in U.S. dollars. Private-sector acceptance of Bitcoin remained voluntary under the agreement terms.
What remains unclear
The exact quantity of bitcoins accumulated in breach of program conditions has not been disclosed. The timeline for fully unwinding the government's remaining Chivo exposure was not specified in the October statement.
Why this matters
El Salvador became the first country to adopt Bitcoin as legal tender in 2021. The IMF program conditions reflected concerns about cryptocurrency volatility and its impact on national finances. The waiver arrangement demonstrates how international lenders are balancing fiscal oversight with recognition of existing cryptocurrency holdings.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.