The International Monetary Fund (IMF) has granted El Salvador waivers for certain missed performance criteria and approved an immediate SDR 101.96 million, or about $138 million, disbursement under the country’s $1.4 billion financing program.
According to the IMF’s official press release, the Executive Board completed the second and third reviews under El Salvador’s 40-month Extended Fund Facility (EFF) arrangement on October 1. The full program provides El Salvador with access to SDR 1.03 billion, or about $1.4 billion.
The IMF said El Salvador’s economy has performed better than expected, while fiscal consolidation, reserve and liquidity buffers, financial-sector reforms, governance and transparency measures have progressed.
The decision comes as the IMF continues to seek a reduction in the state’s involvement in Bitcoin-related activities, stronger regulation and oversight of crypto assets, and greater transparency around public-sector crypto holdings. The IMF said the residual public-sector exposure should ultimately be fully unwound.
Missed Bitcoin performance criterion
El Salvador did not meet certain performance criteria under the IMF program, including one related to Bitcoin accumulation. The IMF granted waivers based on what it described as strong corrective measures and renewed commitments.
The issue dates back to the IMF’s agreement with El Salvador in December 2024. Under the 40-month, $1.4 billion program, the country agreed to limit Bitcoin-related activities and reduce the government’s exposure to the cryptocurrency.
El Salvador subsequently amended its Bitcoin Law, making Bitcoin acceptance voluntary for private businesses. The changes were part of the measures taken to align the country’s Bitcoin framework with the IMF program.
The IMF’s financing deal was formally approved in February 2025. At the time, the fund viewed the government’s Bitcoin holdings as a potential financial risk and sought measures to prevent further increases in public-sector exposure.
Despite the agreement, President Nayib Bukele said in March 2025 that the government’s Bitcoin purchases would continue. The position highlighted the tension between the government’s Bitcoin strategy and the conditions attached to the IMF program.
Earlier dispute over Bitcoin holdings
The IMF’s scrutiny of El Salvador’s Bitcoin holdings continued throughout 2025.
In May, the fund said the government should not increase its overall Bitcoin holdings under the program. By July, IMF Communications Director Julie Kozack said there had been no increase in the total Bitcoin held across government-owned wallets.
Kozack said movements reflected in El Salvador’s Strategic Bitcoin Reserve were linked to transfers between government-controlled wallets rather than an increase in the government’s overall holdings.
The distinction became important as the IMF monitored whether El Salvador was complying with its commitment to limit public-sector Bitcoin accumulation. The latest review found that certain Bitcoin-related performance criteria had not been met, leading to the waiver.
The IMF also highlighted changes involving Chivo, El Salvador’s government-backed crypto wallet. Majority ownership and operational control of Chivo have been transferred to a private operator, while the government has retained a minority stake and custodial responsibilities for customer assets.
The IMF also called for stronger regulation, supervision and governance of crypto-asset providers, along with improved disclosure of public-sector crypto holdings.
El Salvador’s Bitcoin policy
El Salvador became the first country to adopt Bitcoin as legal tender in 2021, alongside the U.S. dollar.
The government later built a broader Bitcoin strategy around public holdings and the Chivo wallet. The IMF’s financing program has sought to reduce the state’s role in these activities and limit the financial risks associated with government-held crypto assets.
The IMF’s 2025 review also required the government to provide information on the public Bitcoin wallets it owned or controlled and establish a framework for managing government-owned Bitcoin and other crypto assets.
The latest review maintains that direction, with the IMF expecting no additional Bitcoin accumulation beyond documented donations.
Economy and next steps
Beyond the crypto sector, the IMF said El Salvador’s economy has performed better than expected. It projects real GDP growth of 4.5% in 2026 and 4% in 2027, supported by improved public security and stronger investor confidence.
Fiscal consolidation has progressed, while liquidity and reserve buffers have also strengthened. The IMF said reforms are continuing in financial-sector resilience, fiscal transparency, governance and anti-money-laundering measures.
El Salvador will now continue efforts to reduce state involvement in Bitcoin-related activities, strengthen crypto-asset regulation and improve transparency around public-sector digital assets.
Also Read: Citigroup Upgrades Bitcoin Price Outlook to $113,000 Over Next 12 Months
