CryptoSlate
El Salvador can access $138 million from its $1.4 billion IMF loan program after the Fund completed two reviews on Oct. 1. The decision came with renewed limits on state Bitcoin accumulation: no further publicly funded purchases are envisaged under the program. El Salvador holds about 7,794.37 BTC, valued at roughly $666.1 million.
Why it matters
The IMF granted waivers for unmet performance criteria tied to Bitcoin accumulation after authorities took corrective measures and recommitted to the limits. The waivers keep financing flowing without changing the program’s position on Bitcoin. Documented donations remain distinct from government-funded purchases, so a rising reserve balance does not by itself show that the government has resumed buying.
The 40-month facility, approved in February 2025, supports fiscal adjustment, stronger reserves and financial-sector reforms. The IMF said fiscal consolidation was broadly on track and reserve and liquidity targets had been comfortably met. It also noted that majority ownership and control of the state-backed Chivo wallet had moved to a private operator, while remaining public-sector exposure still needs to be unwound.
Market impact
The agreement limits the government’s ability to use public funds to expand its Bitcoin reserve while remaining within the IMF program. The Fund is also seeking better disclosure of public-sector crypto holdings, stronger oversight of digital-asset providers and changes to the Digital Asset Issuance Law where needed.
Future reviews will test whether El Salvador can document changes in its Bitcoin balance and complete the remaining Chivo and transparency measures. Unexplained accumulation could require further waivers before additional program financing is released.
Frequently asked questions
-
How much IMF funding did El Salvador gain access to after the reviews?
The completed reviews allow an immediate disbursement of $138 million from El Salvador’s $1.4 billion loan program.
-
Did the IMF allow El Salvador to resume publicly funded Bitcoin purchases?
No. El Salvador renewed its commitment to limits, and no further government-funded Bitcoin accumulation is envisaged under the program.
-
How much Bitcoin does El Salvador hold?
The country holds about 7,794.37 BTC, valued at roughly $666.1 million.
-
Can El Salvador’s Bitcoin balance rise without new government purchases?
Yes. The IMF distinguishes publicly funded purchases from documented donations, so donations can increase the balance without indicating a restart of government buying.
-
What Bitcoin-related obligations remain under the IMF program?
The IMF is seeking better disclosure of public-sector crypto holdings and the unwinding of remaining public-sector exposure to the Chivo wallet, alongside stronger oversight and possible legal changes.
CoinTelegraph
WuBlockchain
CoinDesk
WatcherGuru
TheBlock
Altcoin Daily