El Salvador has secured an immediate $138 million disbursement from the International Monetary Fund after the lender granted waivers for missed performance criteria linked to the country’s Bitcoin accumulation.
The IMF Executive Board completed the second and third reviews of El Salvador’s 40-month Extended Fund Facility on Thursday, allowing the funds to be released under the country’s $1.4 billion financing programme.
The Fund said some performance criteria had not been met, including those relating to Bitcoin accumulation, but granted waivers based on what it described as “strong corrective measures and renewed commitments.”
El Salvador has been required under the IMF programme to limit the state’s exposure to Bitcoin and prevent public resources from being used to accumulate the cryptocurrency.
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The IMF said documentation provided by Salvadoran authorities showed that Bitcoin accumulated since the programme’s first review came from private donations and did not involve public resources.
No further Bitcoin accumulation is expected beyond documented donations.
The Fund said El Salvador had also made progress on financial-sector reforms, fiscal transparency, and anti-money laundering and counter-terrorist financing measures.
A key development was the transfer of majority ownership and operational control of the government’s Chivo e-wallet to a private operator. The government retains a minority stake and custodial responsibilities for customer assets.
The IMF said the programme would continue to focus on
reducing the state’s involvement in Bitcoin-related activities,
strengthening crypto-asset regulation and governance, and
improving transparency around public-sector crypto holdings.
“The state’s involvement in Bitcoin-related activities is being unwound while related regulations are enhanced,” the IMF said.
El Salvador became the first country to adopt Bitcoin as legal tender in 2021 under President Nayib Bukele. Its Bitcoin policy has remained a key issue in negotiations with the IMF which approved the country’s current financing programme in February 2025.
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The latest review also cited stronger-than-expected economic activity, progress on fiscal consolidation and improved liquidity, and reserve buffers. The IMF said continued implementation of reforms would be necessary to strengthen fiscal sustainability, financial resilience, and governance.
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