IMF Review Clears Path for El Salvador to Access $138 Million in Financing
El Salvador has successfully navigated an International Monetary Fund (IMF) review, securing access to $138 million in financing. This comes after the country waived missed criteria tied to Bitcoin accumulation, which had been a point of contention with the IMF. The waiver preserves financing but maintains the ban on fresh state-funded Bitcoin buying, limiting the growth of the country's $666 million Bitcoin reserve.
The IMF's review was part of the 40-month Extended Fund Facility approved in February 2025, which aims to support fiscal adjustment, strengthen reserves, and implement financial-sector reforms. The Fund has previously distinguished between Bitcoin acquired with public money and coins received through documented donations. This distinction remains central to the current arrangement, allowing the reserve to rise without signaling that the government has restarted purchases.
The IMF has also pushed for greater transparency and regulation in the country's crypto sector. El Salvador is required to improve disclosure of public-sector crypto holdings, strengthen regulation and governance for digital-asset providers, and amend its Digital Asset Issuance Law where necessary.
The restrictions give the government less room to use its balance sheet to expand the Bitcoin reserve while remaining inside the IMF program. Future reviews will hinge on whether El Salvador can document how its Bitcoin balance changes while completing the remaining Chivo unwind and transparency reforms.