IMF clears disbursement to El Salvador after waiving Bitcoin accumulation breach
The International Monetary Fund completed reviews under El Salvador's $1.4 billion loan program, releasing roughly $138 million to $139 million after granting a waiver for the government's breach of Bitcoin accumulation limits.
The International Monetary Fund's executive board completed the second and third reviews under El Salvador's $1.4 billion Extended Fund Facility, unlocking an immediate disbursement of SDR 101.96 million—reported as roughly $138 million by CryptoSlate and $139 million by Bloomberg. The board granted waivers for unmet performance criteria tied to Bitcoin accumulation after Salvadoran authorities enacted corrective measures and renewed commitments to the program.[4][1][6][8]
Under the 40-month facility approved in February 2025, El Salvador agreed to restrict publicly funded Bitcoin purchases. Although the nation's reserves grew to roughly 7,794.37 Bitcoin—valued at approximately $666.1 million—the IMF noted that recent additions originated from documented private donations rather than state expenditure. The fund affirmed that no further accumulation beyond documented donations is envisaged, keeping constraints on state-financed acquisitions firmly in place.[4][1][3][5][7]
The IMF observed that El Salvador's economic activity has exceeded expectations, projecting growth of 4.5% for the year and 4% in 2027. Nevertheless, the lender urged President Nayib Bukele's administration to continue scaling back state involvement in cryptocurrency. While the government transferred majority control and ownership of the Chivo wallet to a private operator, the IMF called for remaining public-sector exposure to be fully unwound, alongside stronger digital-asset governance and improved disclosure of public crypto holdings.[1][4][2]
Key facts
- The IMF approved an immediate payout of SDR 101.96 million under El Salvador's $1.4 billion Extended Fund Facility, reported as between $138 million and $139 million.
- The IMF granted waivers for El Salvador's breach of performance criteria restricting further Bitcoin accumulation following corrective measures and renewed commitments.
- The IMF stated that additions to El Salvador's Bitcoin holdings stemmed from documented private donations, maintaining that no further purchases using state funds are allowed.
- El Salvador holds approximately 7,794.37 Bitcoin, valued at about $666.1 million.
- The IMF forecast El Salvador's economic growth at 4.5% for the year and 4% in 2027.
- El Salvador transferred majority ownership and control of the Chivo wallet to a private operator, but the IMF called for remaining public-sector exposure to be fully unwound.
Sources · 8 sources
- WB
Wu Blockchain@WuBlockchainPost on X ·
IMF Approves $139 Million for El Salvador After Waiver for Bitcoin Breach According to Bloomberg, the International Monetary Fund (IMF) approved an immediate $139 million disbursement to El Salvador after granting a waiver for the government’s breach of restrictions on further Bitcoin accumulation. The IMF’s executive board completed the second and third reviews under the country’s $1.4 billion Extended Fund Facility. The IMF said El Salvador’s economic activity had exceeded expectations and forecast growth of 4.5% this year and 4% in 2027. It also urged the government to halt further Bitcoin accumulation, continue reducing the state’s involvement in crypto, and fully transfer its remaining exposure to the Chivo crypto wallet to the private sector.
Open source - CT
Coin TelegraphArticle ·
El Salvador receives $138 million from IMF after Bitcoin waivers granted Efforts will continue to reduce the state’s involvement in Bitcoin-related activities and to strengthen crypto‑asset regulation and governance, the IMF said.
Open source - CB
Coin Bureau@coinbureauPost on X ·
🇸🇻HUGE: Bukele's Bitcoin nation just got $139 MILLION from the IMF, despite breaking the IMF's Bitcoin limit. El Salvador, the first country to make Bitcoin legal tender, agreed to stop buying Bitcoin with government money as part of a $1.4 BILLION IMF loan. But its Bitcoin holdings kept growing. The IMF says the new coins came from private donations, and it waived the breach after El Salvador promised corrective steps. Now the IMF says El Salvador shouldn't add any more Bitcoin beyond those donations.
Open source - CR
CryptoSlateArticle ·
El Salvador’s $666 million Bitcoin reserve survives IMF review El Salvador secured access to $138 million from the IMF while recommitting to limits on further state Bitcoin accumulation. The International Monetary Fund (IMF) completed the second and third reviews of the country’s $1.4 billion loan program on Oct. 1, allowing an immediate disbursement equivalent to SDR 101.96 million, or $138 million. The board also granted waivers for unmet performance criteria tied to Bitcoin accumulation after authorities took corrective measures and renewed their commitments. Those waivers keep financing flowing despite earlier breaches, while leaving the program’s direction on Bitcoin unchanged. The IMF said no further accumulation is envisaged beyond documented donations, preserving a constraint that prevents the government from resuming publicly funded purchases under the program. El Salvador currently holds about 7,794.37 Bitcoin valued at roughly $666.1 million. The size of that reserve has continued to draw attention because additions to government-linked wallets appear inconsistent with the IMF agreement. The Fund has previously distinguished between Bitcoin acquired with public money and coins received through documented donations. That distinction remains central after the latest review: reserve balances can still rise without signaling that President Nayib Bukele’s government has restarted purchases. Bitcoin waiver keeps restrictions intact The Bitcoin concession formed part of a broader review in which the IMF said fiscal consolidation was advancing broadly in line with program objectives and reserve and liquidity targets had been comfortably met. The 40-month Extended Fund Facility was approved in February 2025 and is designed to support fiscal adjustment, stronger reserves and financial-sector reforms. The Fund also cited progress in reducing the state’s direct role in crypto. The government has transferred majority ownership and control of the government-backed Chivo wallet to a private operator, though the IMF said remaining public-sector exposure should still be fully unwound. That leaves several Bitcoin-related obligations unresolved even as another tranche of financing becomes available. The IMF wants El Salvador to improve disclosure of public-sector crypto holdings, strengthen regulation and governance for digital-asset providers and amend its Digital Asset Issuance Law where necessary. Those measures sit alongside the continued commitment to avoid additional government-funded Bitcoin accumulation. Related Reading El Salvador added 1,540 Bitcoin, but the IMF says Bukele’s government didn’t pay for them The restrictions give the government less room to use its balance sheet to expand the Bitcoin reserve while remaining inside the IMF program, even as higher BTC prices increase the value of the holdings it already controls. Future reviews will therefore hinge partly on whether El Salvador can document how its Bitcoin balance changes while completing the remaining Chivo unwind and transparency reforms. Any unexplained accumulation could again force the government to seek waivers before accessing further program financing. The post El Salvador’s $666 million Bitcoin reserve survives IMF review appeared first on CryptoSlate .
Open source - BL
BlockNews@blocknewsdotcomPost on X ·
🚨 JUST IN: 🇸🇻 El Salvador receives $139 MILLION from the IMF despite breaching a Bitcoin-related limit tied to its $1.4 BILLION loan program. The IMF says the additional Bitcoin came from private donations rather than government purchases and waived the breach after El Salvador committed to corrective measures. The IMF says the country should not add more Bitcoin beyond those donations. $BTC
Open source - TB
The Block@TheBlockCoPost on X ·
THE BLOCK: The IMF approved a $138 million disbursement to El Salvador under its $1.4 billion Extended Fund Facility. Notably, it granted a waiver for the country's breach of the program's bitcoin accumulation limits. https://t.co/Xgcahjw7xp
Open source - CR
CryptoSlate@CryptoSlatePost on X ·
El Salvador secured access to $138 million from the IMF after waivers for missed criteria tied to Bitcoin accumulation. The restriction on state-funded $BTC purchases remains. Documented donations can still increase its reserve. https://t.co/Q4lSUE20es
Open source - BL
Bloomberg@businessPost on X ·
The IMF approved a $139 million disbursement to El Salvador after granting a waiver for the government’s breach of a condition limiting further Bitcoin accumulation https://t.co/4uDCR8ryig
Open source