IMF releases $138 million to El Salvador after waiving Bitcoin-related conditions

El Salvador receives $138 million from IMF after Bitcoin waivers granted

The International Monetary Fund has approved an immediate disbursement of approximately $138 million to El Salvador under the country's $1.4 billion financing program. The IMF Executive Board completed the second and third reviews of El Salvador's 40-month Extended Fund Facility arrangement on October 1, 2026.

Despite some performance criteria being missed, including conditions tied to Bitcoin accumulation, the IMF granted waivers. The decision was based on what the organization described as "strong corrective measures and renewed commitments" from the Salvadoran government.

Key numbers

• The disbursement totals approximately $138 million out of the $1.4 billion financing program.
• The Extended Fund Facility runs for 40 months.
• The second and third reviews were completed on October 1, 2026.
• In November 2025, El Salvador reported acquiring 1,090 BTC valued at $100 million.

What the IMF says

The IMF confirmed that El Salvador has made progress in financial sector reforms, fiscal transparency, anti-money laundering and counter-terrorist financing reforms, and the transfer of majority ownership and control of the government's Chivo Bitcoin wallet to a private operator.

The Chivo wallet is a cryptocurrency wallet — a tool that stores and manages digital assets like Bitcoin. Majority ownership has moved to a private operator, while the Salvadoran government retained a minority stake and custodial responsibilities. Custodial responsibilities mean the government still plays a role in safeguarding the assets held in the wallet.

The IMF stated that efforts will continue to reduce the state's involvement in Bitcoin-related activities, strengthen crypto-asset regulation and governance, and enhance transparency regarding public-sector crypto-asset holdings.

How Bitcoin accumulation was verified

El Salvador's Bitcoin holdings grew after the first IMF review in June 2025, which raised questions about whether the country was using public funds for purchases. Documents supplied by Salvadoran authorities confirmed that the increase came from private donations. The IMF reviewed these documents and concluded that no public resources were used to finance the additional Bitcoin.

The IMF noted that no further Bitcoin accumulation is envisaged beyond the documented donations.

What is still unclear

While the IMF approved the waivers, some performance criteria tied to Bitcoin accumulation were not fully met. The specific criteria that were missed and the precise terms of each waiver have not been fully detailed in the available reporting.

Why this matters

The IMF's decision to proceed with the disbursement while setting a firm boundary — no further Bitcoin accumulation beyond donations — establishes a parameter for El Salvador's future government crypto activity. The requirement for stronger crypto-asset regulation and transparency reflects the IMF's conditions going forward.

The transfer of the Chivo wallet's majority ownership to a private operator, combined with the IMF's stated expectation of reduced state involvement, shows a shift toward more private-sector management of government-linked crypto holdings.

Sources

• Cointelegraph

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