The International Monetary Fund has approved the immediate release of roughly $138 million to El Salvador under its $1.4 billion financing program, following the completion of the IMF’s second and third reviews of the country’s 40-month Extended Fund Facility (EFF). The IMF said the disbursement can proceed even though some performance targets were missed, including those tied to Bitcoin accumulation.
In a press release issued after the Executive Board completed the reviews on Thursday, the IMF confirmed that it granted waivers for unmet criteria on the basis of what it described as “strong corrective measures and renewed commitments.” The decision underscores how closely the IMF is monitoring El Salvador’s crypto-related policy—while also signaling that the lender remains willing to move forward when it believes safeguards and reforms are strengthening.
Key takeaways
- The IMF approved an immediate disbursement of about $138 million despite not meeting some program performance criteria, including Bitcoin accumulation-related targets.
- The Executive Board issued waivers after concluding that El Salvador has put “strong corrective measures” in place and renewed commitments under the EFF arrangement.
- Progress cited by the IMF includes financial sector reforms, steps to improve fiscal transparency, and AML/CFT reforms.
- The IMF says majority ownership and operational control of the government Chivo Bitcoin wallet has been transferred to a private operator, with the state retaining a minority stake and custodial responsibilities.
- No further Bitcoin accumulation is envisaged beyond documented donations, according to the IMF.
IMF clears the way for the next tranche
The IMF’s Executive Board completed the second and third reviews of El Salvador’s 40-month EFF arrangement, clearing the way for the immediate release of approximately $138 million. These reviews are a core part of how the IMF releases funds under multi-tranche programs: each review assesses whether a borrowing country has met agreed targets or implemented the actions needed to address shortcomings.
While the IMF acknowledged that certain performance criteria were not met, it moved forward with the disbursement by granting waivers. The IMF framed its decision around the corrective steps El Salvador has taken and the commitments the country reiterated, rather than requiring full compliance with every target.
Bitcoin accumulation remains a focal point
Among the criteria that were not met, the IMF specifically pointed to shortcomings related to Bitcoin accumulation. However, the IMF’s position also clarifies what growth in El Salvador’s holdings is intended to represent.
The IMF said that efforts will continue to reduce the state’s involvement in Bitcoin-related activities and to strengthen crypto-asset regulation and governance. It also stated that there will be enhanced transparency around public-sector crypto-asset holdings.
Most notably for market watchers, the IMF added that “No further Bitcoin accumulation is envisaged beyond the documented donations.” That language matters because it attempts to draw a line between two different explanations for an increase in holdings: government-funded purchasing versus incoming Bitcoin obtained through donations.
What the IMF says changed: Chivo wallet control and policy guardrails
Beyond Bitcoin accumulation targets, the IMF highlighted broader reforms it believes have advanced during the program reviews. The lender cited progress in financial sector reforms, fiscal transparency measures, and AML/CFT reforms—elements that typically sit at the heart of IMF conditionality.
The IMF also described a structural change in the country’s Chivo Bitcoin wallet governance. It said majority ownership and operational control of the wallet have been transferred to a private operator, while the government retains a minority stake and custodial responsibilities. In practice, that shift is designed to reduce direct state involvement in day-to-day crypto operations, aligning El Salvador’s setup more closely with the IMF’s concerns about public-sector exposure.
For investors and observers following the country’s evolving crypto framework, the key point is that the IMF is not only assessing outcomes (such as Bitcoin holdings) but also the institutional arrangements that determine who manages crypto assets and under what oversight.
Earlier questions about purchases after the first review
The IMF’s latest confirmation follows earlier controversy about how El Salvador’s Bitcoin holdings grew after the first review of its IMF program.
After the first review, El Salvador said in November 2025 that it had acquired 1,090 BTC worth $100 million. That announcement renewed scrutiny over whether the country’s Bitcoin purchases complied with the conditions attached to its $1.4 billion EFF arrangement.
Cointelegraph had reported on Sept. 4 that, according to the IMF, El Salvador used no public resources to accumulate Bitcoin after the first review in June 2025. The IMF said documents provided by Salvadoran authorities verified that the accumulation came from private donations—meaning the increase in holdings was not the result of additional Bitcoin purchases financed with government resources.
In this context, the IMF’s latest wording about “documented donations” reads as an extension of the same argument: that holdings can rise without violating program constraints if the source of the assets is private donations rather than public spending.
What to watch next for compliance and transparency
Going forward, readers should watch how El Salvador demonstrates—review after review—that its crypto activity stays consistent with IMF expectations: particularly whether Bitcoin-related holdings continue to be tied to verifiable donations and whether the country’s regulatory and governance reforms keep improving as the IMF’s conditionality progresses.
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