IMF Unlocks $138 Million for El Salvador Amid Bitcoin Reserve Review
El Salvador has managed to retain access to IMF financing despite previous breaches tied to its Bitcoin accumulation. The IMF recently unlocked approximately $138 million after waiving missed criteria related to Bitcoin purchases. This waiver allows the country to continue receiving funding while maintaining restrictions on new state-funded Bitcoin acquisitions. The IMF emphasized that any future Bitcoin additions must be fully documented and transparent.
El Salvador currently holds about 7,794.37 Bitcoin, valued at roughly $666.1 million. The IMF's review noted that the country has made progress in reducing the state's direct role in crypto, particularly by transferring majority ownership of the government-backed Chivo wallet to a private operator. However, the IMF insists that all remaining public-sector exposure to crypto must be fully unwound.
The IMF's 40-month Extended Fund Facility, approved in February 2025, aims to support fiscal adjustment, stronger reserves, and financial-sector reforms. The latest review highlighted that fiscal consolidation is advancing broadly in line with program objectives. However, the IMF's restrictions limit El Salvador's ability to expand its Bitcoin reserve using public funds, even as higher BTC prices increase the value of existing holdings.
Future IMF reviews will focus on El Salvador's ability to document changes in its Bitcoin balance, complete the unwinding of the Chivo wallet, and implement transparency reforms. Any unexplained accumulation of Bitcoin could jeopardize the country's access to further financing under the program.