El Salvador Unlocks $138M IMF Funds After Bitcoin Policy Adjustments

El Salvador has unlocked $138 million in IMF funds after the International Monetary Fund granted waivers for missed performance criteria tied to the country’s Bitcoin accumulation. The IMF’s Executive Board approved the second and third reviews of El Salvador’s 40-month Extended Fund Facility, releasing the funds under the country’s $1.4 billion financing program. While some performance criteria, including those related to Bitcoin, were not met, the IMF cited “strong corrective measures and renewed commitments” as the reason for the waivers.

The IMF noted that Bitcoin accumulated since the program’s first review came from private donations and did not involve public resources. The fund also highlighted progress on financial-sector reforms, fiscal transparency, and anti-money laundering measures. A significant development was the transfer of majority ownership and operational control of the government’s Chivo e-wallet to a private operator, with the government retaining a minority stake and custodial responsibilities.

The IMF emphasized that the program will continue to focus on reducing the state’s involvement in Bitcoin-related activities, strengthening crypto-asset regulation, and improving transparency around public-sector crypto holdings. El Salvador had adopted Bitcoin as legal tender in 2021 under President Nayib Bukele, and its Bitcoin policy has been a key issue in negotiations with the IMF, which approved the current financing program in February 2025.

The latest review also cited stronger-than-expected economic activity, progress on fiscal consolidation, and improved liquidity and reserve buffers. The IMF stressed that continued implementation of reforms will be necessary to strengthen fiscal sustainability, financial resilience, and governance.