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Payment released after IMF reviews

The IMF has completed its second and third reviews of El Salvador’s 40-month Extended Fund Facility (EFF) arrangement and approved the immediate disbursement of about $138 million to the country. The payment is part of a $1.4 billion financing program, although it was noted that some performance criteria, particularly on Bitcoin accumulation, were not met.

Even so, the Fund’s Executive Board granted a waiver. The statement said the decision was based on strong corrective measures and renewed commitments, with continued external financing for El Salvador and the preservation of program continuity among the key priorities.

What stood out in the Bitcoin conditions?

The IMF said the state’s role in Bitcoin-related activities would be reduced further, crypto asset regulation and governance would be strengthened, and transparency over public-sector crypto holdings would improve. The institution also said no additional Bitcoin accumulation is planned beyond documented donations.

The IMF said, “No further Bitcoin accumulation is envisaged beyond documented donations.”

Control of the Chivo wallet shifted to a private operator

According to the Fund’s assessment, areas showing progress included financial sector reforms, fiscal transparency, and steps to combat money laundering and terrorist financing. It also said majority ownership and operational control of the state’s Chivo Bitcoin wallet had been transferred to a private operator.

  • Progress in financial sector reforms
  • Improved fiscal transparency
  • Steps in AML/CFT rules
  • Transfer of majority control of the Chivo wallet

What message does this send on public funds and program compliance?

The IMF also reiterated, after its first review in June, that El Salvador had not used public funds to accumulate Bitcoin. Based on documentation provided by Salvadoran authorities, the Fund said the increase in holdings came from private donations and therefore did not amount to additional purchases made with government resources.

The clarification comes after El Salvador announced in November 2025 that its reserves had risen by 1,090 BTC, worth about $100 million, prompting debate over compliance with the program. The latest decision suggests the country will continue to have access to IMF financing while tighter oversight and a more limited public role in Bitcoin policy are being reinforced.

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