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IMF hands El Salvador $138 million after bitcoin loan waiver deal

IMF approves $138 million to El Salvador despite Bitcoin misses, waiving accumulation targets amid transparency push.

By mitch·3 min read
A globe with a bitcoin logo highlights a financial payout while a Central American country stands by its cryptocurrency holdings.

The International Monetary Fund has approved a $138 million payout to El Salvador under a $1.4 billion financing program, even though the country missed some of its performance targets. The deal includes Bitcoin.

The IMF’s Executive Board completed the second and third reviews of El Salvador’s 40-month Extended Fund Facility (EFF) arrangement on Thursday. The board granted waivers on certain criteria, including Bitcoin accumulation, “based on strong corrective measures and renewed commitments,” according to the IMF’s press release.

What the Waivers Cover

The IMF said El Salvador made progress on several fronts:

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  • Financial sector reforms
  • Fiscal transparency
  • AML/CFT reforms
  • The transfer of majority ownership and control of the government Chivo Bitcoin wallet to a private operator

“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.”

The agency also pointed out that “No further Bitcoin accumulation is envisaged beyond the documented donations.”

The Bitcoin Acquisition Question

El Salvador’s announcement from November 2025, in which it stated it had acquired 1,090 BTC worth $100 million, came before the waiver. The disclosure renewed questions about whether the country was complying with its IMF program.

After the first review of El Salvador’s IMF financing program in June 2025, Cointelegraph reported on Sept. 4 that the country spent no public funds to buy Bitcoin. The report said the purchase was financed through private donations. The IMF confirmed the claim after reviewing documents submitted by Salvadoran authorities.

The lender said that the rise in El Salvador’s holdings did not come from any fresh purchases paid for with government money.

A private operator now owns the Chivo wallet outright and runs it day to day, according to the IMF. The government kept a minority shareholding and the duty of keeping custody instead.

What Happens Next

The International Monetary Fund said it would keep working to cut back on the state’s role in Bitcoin-linked activities and to tighten controls over digital currencies and their management. It also pushed for more openness about how governments hold digital assets.

El Salvador keeps receiving the funds it needs to continue advancing down its reform path, while still holding onto a controversial asset. The real test now lies in whether the nation can live up to the promises it has already made.

The Key Numbers

  • $138 million: Immediate disbursement approved
  • $1.4 billion: Total financing program
  • 40 months: Length of the EFF arrangement
  • 1,090 BTC: Value of the November 2025 acquisition
  • $100 million: Worth of the November 2025 acquisition

What This Means for Bitcoin in El Salvador

What stands out about the IMF’s move is that it permits El Salvador to hold on to its Bitcoin reserves even though the country has not reached the accumulation goals tied to its loan. The organization is banking on the corrective steps and renewed promises proving effective.

A reduction in state involvement with Bitcoin has been pledged by the nation. It is not yet clear whether that commitment will be fulfilled.

The funds are currently on the table, and the IMF will keep a close eye on whether they actually come through.

Source material: “El Salvador receives $138 million from IMF after Bitcoin waivers granted,” Cointelegraph.

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