IMF releases $138 million to El Salvador despite Bitcoin accumulation waiver

The International Monetary Fund has released $138 million to El Salvador despite the government missing a key pledge to stop buying Bitcoin, a sign the Fund is prioritizing broader fiscal progress over strict compliance with its crypto conditions. The waiver keeps El Salvador’s $1.4 billion loan program intact even as President Nayib Bukele’s administration continues to hold Bitcoin on its balance sheet.

• The IMF Executive Board completed the second and third reviews of El Salvador’s Extended Fund Facility on October 1.
• The disbursement equals SDR 101.96 million, or roughly $138 million, part of a $1.4 billion program agreed in February 2025.
• Majority ownership and control of the government’s Chivo Bitcoin wallet has shifted to a private operator.

• $138M latest IMF disbursement approved after the Bitcoin waiver
• $1.4B total financing available under the 40-month EFF program
• Oct. 1 date IMF board completed second and third program reviews
• 40 mo. length of program El Salvador entered in February 2025

The International Monetary Fund has approved a disbursement worth SDR 101.96 million, equivalent to about $138 million, for El Salvador after granting the government a waiver for failing to meet a Bitcoin accumulation condition tied to its loan program. The IMF Executive Board signed off on the payout after completing the second and third reviews of El Salvador’s Extended Fund Facility arrangement on October 1. The story was first reported by CryptoPotato.

IMF grants waiver over Bitcoin accumulation shortfall

El Salvador’s economy has outperformed expectations, the Fund said, citing improved security conditions and stronger investor confidence. Fiscal consolidation has broadly stayed on track and reserve and liquidity buffers have strengthened.

Even so, the government did not meet every program condition, including a commitment related to its Bitcoin holdings. The IMF granted waivers based on what it described as corrective measures and renewed commitments from Salvadoran authorities, according to the IMF’s press release on the completed reviews.

Under the revised terms, El Salvador is not expected to add to its Bitcoin stockpile beyond donations that are formally documented. The IMF statement said the government is working to shrink its footprint in Bitcoin-related activity, including steps to improve transparency around public-sector crypto holdings and tighten oversight of crypto-asset firms operating in the country. “No further Bitcoin accumulation is envisaged beyond the documented donations,” the Fund said in its release, adding that efforts will continue to reduce the state’s involvement in Bitcoin-related activities, strengthen crypto-asset regulation and governance, and enhance transparency regarding public-sector holdings.

Chivo wallet moves to private control

El Salvador’s state-run Chivo digital wallet, once central to the country’s push to make Bitcoin legal tender, has shifted toward private management. The IMF said majority ownership and control of Chivo have been transferred to a private operator, with remaining public-sector exposure expected to be unwound over time.

The change marks a retreat from the direct government role Chivo played since its 2021 launch alongside El Salvador’s Bitcoin legal-tender law. No timeline for the full unwinding of public exposure was given in the IMF’s statement.

$1.4 billion program still hinges on pension and governance reforms

El Salvador agreed to the 40-month IMF program in February 2025, with total access of about $1.4 billion. The $138 million disbursement now approved is the latest tranche within that broader arrangement, following the completed second and third reviews.

The IMF said further work remains to strengthen public finances, rebuild external reserves and shore up financial-sector resilience. Pension and civil service reforms, which had faced earlier delays, are expected to move forward under the program’s next phase.

The Fund also called for stronger governance, pointing to public-sector reporting, beneficial ownership disclosures, asset declarations and anti-money-laundering rules as priority areas. It described these measures as crucial to maintaining economic stability.

The BlockWest read. The waiver shows the IMF treating Bitcoin policy as negotiable so long as fiscal metrics hold, which gives Bukele room to keep sovereign holdings on the books while outsourcing operational risk through Chivo’s privatization. For allocators watching sovereign Bitcoin exposure as a template, the real signal is that IMF financing now effectively caps future accumulation without forcing disposal of existing coins.

El Salvador’s next test comes as the IMF tracks whether pension and civil service reforms, delayed once already, advance under the remaining reviews of the 40-month program before it concludes.

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