IMF Approves $138 Million for El Salvador Despite Bitcoin Waiver

El Salvador received $138 million from the International Monetary Fund (IMF) on October 1, following the approval of its Extended Fund Facility. The disbursement was accompanied by a waiver for the country’s violation of a performance condition that restricted the government from voluntarily accumulating Bitcoin. Despite this waiver, the IMF emphasized that no further Bitcoin accumulation beyond documented donations is permitted.

The country’s Bitcoin reserves have grown significantly since the IMF program began in February 2025, increasing by over 1,700 BTC by September 2026. El Salvador defended this growth by asserting that the additional coins came from private donations rather than government funds. However, the IMF expressed concerns about the transparency of these donations and requested more information regarding the public sector’s Bitcoin holdings.

Beyond the Bitcoin issue, El Salvador is gradually scaling back its cryptocurrency framework. The government has privatized the Chivo digital wallet, with a private operator now managing it and the state retaining only a minority interest. The IMF has encouraged the complete unwinding of any remaining public-sector exposure to stablecoin operations.

The IMF’s leniency toward the Bitcoin breach is attributed to El Salvador’s strong macroeconomic performance. The country’s real GDP growth accelerated to 3.9% in 2025, and the non-financial public sector achieved a primary surplus of $706 million. However, structural reforms, particularly in pensions and civil service, remain deferred, raising concerns about long-term financial stability.