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- El Salvador unlocked an immediate $138 million IMF disbursement after the lender completed the second and third financing program reviews.
- The IMF granted waivers for missed performance criteria, including a condition tied to public-sector Bitcoin accumulation.
- The IMF wants public-sector exposure to the Chivo wallet unwound and greater disclosure of government crypto holdings.
El Salvador has unlocked an immediate $138 million disbursement from the International Monetary Fund after the lender completed the second and third reviews of the country’s $1.4 billion financing program.
The IMF granted waivers for missed performance criteria, including a condition tied to Bitcoin accumulation. The approval keeps the 40-month Extended Fund Facility moving while maintaining restrictions on future public-sector Bitcoin activity.
IMF Accepts Corrective Measures After Bitcoin Criterion was Missed
The IMF said some program conditions were not met but approved waivers based on corrective measures and renewed commitments from Salvadoran authorities.
Bitcoin accumulation was among the missed performance criteria. El Salvador had committed under the program to stop public-sector Bitcoin accumulation.
IMF staff said documentation supplied by the government showed Bitcoin added since the first review came from private donations rather than public funds. The lender now expects no further accumulation beyond those documented donations.
Chivo Control Moves to Private Operator
El Salvador has transferred majority ownership and operational control of the Chivo wallet to a private operator. The government retains a minority stake and custodial responsibilities for customer assets.
The IMF wants the remaining public-sector exposure to Chivo unwound and is seeking greater disclosure of government crypto holdings. It is also calling for stronger regulation, supervision, and governance of digital asset providers as El Salvador continues implementing changes required under the financing program.
$138M Payment Follows Combined Second and Third IMF Reviews
The latest payment follows completion of the combined second and third reviews of the Extended Fund Facility. The arrangement was approved in February 2025 for SDR 1.03 billion, worth about $1.4 billion, over 40 months.
Bitcoin restrictions remain in place as the program continues. The IMF expects greater transparency around public crypto holdings, further reduction of state exposure to Chivo and no additional Bitcoin accumulation beyond verified private donations.
