El Salvador Gets $138 Million IMF Tranche as Bitcoin Buying Curbs Stay in Place

The International Monetary Fund said it has completed the second and third reviews of El Salvador's $1.4 billion lending program, clearing an immediate disbursement of SDR 101.96 million, equivalent to about $138 million. The IMF's board approved waivers for missed performance criteria linked to Bitcoin accumulation after authorities took corrective steps and reaffirmed their commitments. The decision keeps funding available despite earlier breaches, without altering the program's restrictions on Bitcoin. The Fund said it does not envisage any further Bitcoin accumulation beyond documented donations. That condition blocks the government from resuming publicly funded Bitcoin purchases under the IMF arrangement. El Salvador holds about 7,794.37 Bitcoin, valued at roughly $666.1 million. The IMF noted that additions to government-linked wallets appear inconsistent with the agreement, though it has previously distinguished between Bitcoin bought with public funds and coins received via documented donations. As a result, reported reserve balances can rise without necessarily implying that President Nayib Bukele's administration has restarted purchases, while higher Bitcoin prices can lift the value of existing holdings. On the broader program, the IMF said fiscal consolidation is advancing broadly in line with objectives and that reserve and liquidity targets have been comfortably met. The 40-month Extended Fund Facility was approved in February 2025 to support fiscal adjustment, stronger reserves and financial-sector reforms. The IMF also cited progress in reducing the state's direct role in crypto. El Salvador has transferred majority ownership and control of the government-backed Chivo wallet to a private operator, but the Fund said remaining public-sector exposure to Chivo should still be fully unwound. Additional commitments remain outstanding. The IMF wants improved disclosure of public-sector crypto holdings, stronger regulation and governance for digital-asset providers, and amendments to the Digital Asset Issuance Law where needed. These requirements sit alongside the pledge to avoid further government-funded Bitcoin accumulation. The IMF said future reviews will depend in part on whether El Salvador can document changes in its Bitcoin balance while completing the remaining Chivo unwind and transparency measures. Unexplained Bitcoin accumulation could again force the government to seek waivers to access additional program financing.