IMF Waives Bitcoin Breaches for El Salvador’s $138 Million Loan
El Salvador has successfully navigated another review of its $1.4 billion loan program with the International Monetary Fund (IMF), securing access to $138 million despite earlier breaches tied to Bitcoin accumulation. On October 1, the IMF completed the second and third reviews, allowing the immediate disbursement of SDR 101.96 million ($138 million). The board also granted waivers for unmet performance criteria related to Bitcoin, as the government took corrective measures and renewed its commitment to limits on further state Bitcoin purchases.
The waivers ensure that financing continues to flow, even though the IMF’s restrictions on Bitcoin accumulation remain unchanged. The Fund clarified that no further Bitcoin purchases are planned beyond documented donations, preserving a constraint that prevents the government from resuming publicly funded purchases under the program. El Salvador currently holds approximately 7,794.37 Bitcoin, valued at around $666.1 million, a reserve that has drawn attention due to inconsistencies with the IMF agreement.
The IMF highlighted progress in reducing the state’s direct role in crypto, noting that the government has transferred majority ownership of the Chivo wallet to a private operator. However, the Fund emphasized that remaining public-sector exposure should be fully unwound. Additional obligations, such as improving disclosure of public-sector crypto holdings and strengthening regulation for digital-asset providers, remain unresolved.
Future reviews will depend on El Salvador’s ability to document changes in its Bitcoin balance while completing the remaining Chivo unwind and transparency reforms. Any unexplained accumulation could force the government to seek further waivers before accessing additional program financing.