El Salvador: IMF Relents on Bitcoin and Unlocks $138 Million

El Salvador will receive an additional $138 million from the IMF despite a gap related to its commitments on Bitcoin. The institution approved the second and third reviews of its financing program and granted several waivers to the country. The BTC file remains under surveillance. The IMF still wants to reduce the direct involvement of the State in crypto.

Bitcoin Does Not Prevent the $138 Million Payment

The IMF’s board approved on October 1 the second and third reviews of El Salvador’s program. This decision releases 101.96 million SDRs, about $138 million. The funding is part of a much broader deal. In February 2025, El Salvador had obtained a 40-month program granting access to about $1.4 billion.

Bitcoin was already among the sensitive conditions. The country had committed to limiting the public accumulation of BTC and reducing the State’s involvement in its crypto ecosystem. However, the IMF now acknowledges that some performance criteria were not met, notably those concerning Bitcoin accumulation.

This is not the first time. Last year, El Salvador was already accused of circumventing certain IMF rules on Bitcoin. This time, Washington does not block the funding. The IMF granted waivers after reviewing corrective measures taken by the authorities and their new commitments. Therefore, $138 million will be available immediately.

The New Bitcoins Would Come from Private Donations

The issue remains complicated by an apparent contradiction. El Salvador’s official wallets continued to show more bitcoins even though the country had committed to limiting their accumulation with public resources.

In September, the IMF provided an explanation. The government reportedly gave documents showing that the bitcoins added since the first review came from private donations. No public money was used to finance these new entries.

This distinction matters in the program’s context. The IMF does not just ask to look at how many BTC appear in wallets. It mainly seeks to limit the direct financial exposure of the public sector.

El Salvador already displayed about 7,687 BTC in June despite pressure from the institution. This reserve had continued to increase over the months. The IMF now seems to accept the donation explanation for the already documented bitcoins. But the margin remains narrow. Its October 1 press release specifies that no further accumulation is planned beyond these donations.

The IMF Still Wants to Reduce State Exposure

The $138 million disbursement does not mean the disagreement around Bitcoin is gone. The IMF continues to ask El Salvador to reduce the State’s involvement in BTC-related activities. The transfer of the majority of the capital and operational control of the Chivo wallet to a private operator is among the progress praised by the institution. The leftover public exposure still needs to be removed.

The IMF also demands more transparency regarding the public sector’s crypto holdings as well as strengthened regulation and supervision of digital asset service providers. The rest of the program advances better. Reserve and liquidity targets have been exceeded. The IMF forecasts real GDP growth for El Salvador of 4.5% in 2026, then 4% in 2027.

Bitcoin remains a point of friction, but not a sufficient obstacle to suspend financing. El Salvador obtains its $138 million. In exchange, the IMF maintains its stance: less Bitcoin directly linked to the State, more transparency, and no new accumulation beyond already documented donations. Perhaps this is how the IMF finally hopes to curb the rush it fears.