IMF Approves $138 Million for El Salvador Despite Missed Bitcoin Targets
The International Monetary Fund has approved $138 million in additional financing for El Salvador despite the country missing certain Bitcoin-related targets under its economic reform program.
The IMF Executive Board completed the second and third reviews of El Salvador’s financing arrangement on Thursday, According to the IMF, allowing another disbursement from a $1.4 billion Extended Fund Facility scheduled to run for 40 months.
The board granted waivers for several unmet performance criteria after Salvadoran authorities introduced corrective measures and renewed their commitments under the program. The approval also came with continued expectations that the government will reduce its direct involvement in Bitcoin-related activities.
The IMF said El Salvador has also made progress on financial-sector reforms, fiscal transparency, and measures designed to combat money laundering and terrorist financing.
IMF Maintains Pressure on El Salvador’s Bitcoin Policy
A central issue in the latest review was El Salvador’s accumulation of Bitcoin. Salvadoran authorities provided documentation indicating that Bitcoin added to the country’s holdings since the first program review in June 2025 came from private donations rather than public funds.
The IMF said those additions did not involve government resources, distinguishing them from Bitcoin purchases financed with public funds under the economic program.
The clarification followed the government’s announcement in November 2025 that it had acquired 1,090 Bitcoin worth approximately $100 million. The subsequent explanation regarding the source of those additions helped address questions surrounding whether public resources had been used.
Despite the missed Bitcoin accumulation targets, the IMF’s board granted the requested waivers. The lender said it does not expect further Bitcoin accumulation as Salvadoran authorities carry out their commitments under the financing arrangement.
The IMF also continues to emphasize stronger cryptocurrency regulation, improved governance, and greater transparency surrounding publicly held digital assets.
Chivo Wallet Control Moves Toward Private Operator
El Salvador has also taken steps to reduce the government’s role in cryptocurrency operations.
According to the IMF’s September assessment, authorities transferred majority ownership and operational control of the Chivo Bitcoin wallet to a private operator. The government retained a minority ownership stake as well as custodial responsibilities for customer assets.
The restructuring forms part of the broader effort to limit direct state involvement in Bitcoin while strengthening oversight of cryptocurrency-related activities.
The latest IMF review therefore combines continued financing with conditions focused on fiscal reforms, financial-sector oversight, cryptocurrency governance, and transparency around public Bitcoin holdings.
The $138 million approval allows El Salvador to advance its IMF program despite the missed Bitcoin-related criteria, while the government remains committed to reducing its role in Bitcoin operations and meeting the broader reform requirements of the financing arrangement.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.