IMF Approves $138 Million Disbursement for El Salvador Despite Bitcoin Policy Waivers

El Salvador received a cash disbursement of approximately 138 million dollars from the International Monetary Fund following the completion of the second and third reviews of the country’s Extended Fund Facility agreement, as reported by Infobae. The new funds elevate total resources disbursed under the 1.4 billion dollar program to about 690 million dollars, according to Infobae and Criptotendencias. The financial injection arrives despite El Salvador missing certain performance criteria tied to the government’s accumulation of Bitcoin.

Executive Board Approves Waivers Over Bitcoin Policy

The IMF Executive Board granted formal waivers for the unmet performance criteria based on solid corrective measures and renewed commitments from Salvadoran authorities, according to Criptotendencias. While El Salvador made Bitcoin legal tender in September 2021, the agreement with the IMF required the government to reduce its public exposure to the volatile cryptocurrency. Criptotendencias reported that the program forced the government to modify Bitcoin’s legal status so that merchant acceptance became voluntary rather than mandatory, while also limiting cryptocurrency usage in public-sector transactions.

Criptotendencias noted that despite these concessions, the Salvadoran state continued periodic purchases for its treasury, triggering friction with the lender. Civil society organizations in the country previously warned of corruption risks surrounding state Bitcoin purchases due to a lack of clear controls over public funds. Infobae and Criptotendencias highlighted that the IMF expects no additional Bitcoin accumulation going forward, barring documented donations.

Private Operator Takes Over Chivo Wallet Control

A central element of the compliance review involved transferring majority ownership and operational control of the government-backed Chivo Bitcoin wallet to a private operator, leaving the state with a minority stake and custody responsibilities, according to the IMF statements cited by Infobae. The IMF stated that documents provided by Salvadoran authorities verified that any growth in public Bitcoin holdings after the first review stemmed entirely from private donations rather than purchases financed by public resources.

The IMF emphasized that efforts will continue to reduce state participation in Bitcoin-related activities, improve regulatory oversight, and enhance transparency regarding public-sector crypto holdings. Infobae reported that the economy has outperformed prior forecasts, with the IMF projecting a gross domestic product growth rate of 4.5% for 2026, driven by private consumption, investment, and remittances.

IMF Projects Primary Surplus Growth and Stable Public Debt

Infobae reported that the IMF pointed to ongoing challenges in executing the economic program, noting that pending measures include deepening fiscal consolidation, strengthening tax administration, containing public spending, and advancing reforms in pensions and the civil service. The IMF projects that the non-financial public sector primary surplus will rise from 2.9% of GDP in 2026 to 3.7% in 2027. Public debt is expected to hover around 85% of GDP for 2026, according to Infobae.