IMF Approves Financial Support for El Salvador
The International Monetary Fund (IMF) has approved a disbursement of approximately $138 million to El Salvador, part of a broader $1.4 billion financial support program. This decision comes even as the country missed specific performance targets associated with the program, particularly those linked to Bitcoin accumulation.
Assessment and Exceptions
In a press release, the IMF’s Executive Board announced the conclusion of its second and third assessments of El Salvador’s Extended Fund Facility (EFF), which runs for 40 months. Despite these setbacks, the IMF granted exceptions due to the government’s commitment to implementing corrective actions.
Regulatory Measures and Bitcoin Transactions
The IMF emphasized its intent to limit the government’s role in Bitcoin transactions and to enhance regulations surrounding crypto assets. These measures also aim to promote greater transparency regarding public-sector crypto holdings. According to the IMF, no further accumulation of Bitcoin through government funds is expected, as the current holdings are derived solely from private donations.
Clarifications on Bitcoin Holdings
Related reports highlighted that following a review in June 2025, it was confirmed that El Salvador has not utilized public funds for Bitcoin purchases, indicating that previous increases in its crypto holdings were financed through private contributions.
Furthermore, the IMF noted a significant step in transferring ownership and control of the Chivo Bitcoin wallet to a private entity, with the Salvadoran government maintaining a minority share and custodial duties.
Concerns and Ongoing Initiatives
This clarification comes on the heels of concerns raised when El Salvador reported acquiring 1,090 BTC valued at $100 million in November 2025, leading to questions about the country’s adherence to the stipulations of its IMF assistance agreement. The ongoing initiatives in El Salvador include enhancing fiscal transparency and progressing with anti-money laundering and counter-financing of terrorism reforms, alongside a commitment to regulating the crypto space effectively.
