The International Monetary Fund has approved a disbursement of SDR 101.96 million ($138 million) for El Salvador following the completion of the second and third reviews of the country's Extended Fund Facility program on October 1.
The IMF granted El Salvador a waiver for not meeting a condition related to Bitcoin accumulation, citing improved economic performance supported by better security and stronger investor confidence. The country has made progress in reducing fiscal imbalances and strengthening reserve and liquidity buffers, though some program conditions remained unmet.
Bitcoin Restrictions Going Forward
Under renewed commitments, El Salvador is prohibited from accumulating additional Bitcoin beyond documented donations. The government has agreed to reduce its role in Bitcoin-related activities and improve transparency around public-sector crypto holdings.
The IMF statement noted 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.
Chivo Wallet Transition
El Salvador's government-backed Chivo digital wallet has shifted toward private control, with majority ownership and control transferred to a private operator. The IMF indicated that remaining public-sector exposure should eventually be unwound.
Broader Program Framework
El Salvador agreed to the 40-month IMF program in February 2025, which provides total access of approximately $1.4 billion. The latest disbursement is part of this arrangement.
The IMF emphasized that the country still requires further reforms to strengthen public finances, rebuild external reserves, and improve financial-sector resilience. Reforms to pensions and civil service are also expected to advance following earlier delays. The fund highlighted the need for stronger governance and greater transparency in areas including public-sector reporting, beneficial ownership disclosures, asset declarations, and anti-money laundering rules.
