IMF Approves $138M for El Salvador After Waiving Bitcoin Breach

Highlights:

• IMF approved $138 million for El Salvador after waiving missed program conditions linked to Bitcoin accumulation.
• El Salvador said recent Bitcoin additions came from private donations, with no public funds used.
• IMF expects El Salvador to reduce state crypto exposure while economic growth improves under its reform program.

The International Monetary Fund (IMF) has approved about $138 million in fresh funding for El Salvador after granting waivers for missed program conditions, including one linked to Bitcoin accumulation. Bloomberg reported the decision on October 1. The IMF confirmed the same day that its Executive Board had completed the second and third reviews of El Salvador’s Extended Fund Facility program. The approval allows the country to immediately access SDR 101.96 million, worth about $138 million.

IMF Grants Waiver Over Bitcoin Accumulation

El Salvador did not meet several performance criteria under its IMF program. One of them covered public-sector Bitcoin accumulation. However, the IMF granted waivers after reviewing corrective measures and renewed commitments from Salvadoran authorities. As a result, the missed targets did not prevent the IMF from releasing the latest funding.

The Bitcoin issue has been closely watched because El Salvador agreed to limit further government involvement in the cryptocurrency as part of its IMF deal. In September, IMF staff said El Salvador had provided documents showing that Bitcoin added since the previous review came from private donations. According to the Fund, it used no public resources for those additions. The IMF now expects no further Bitcoin accumulation apart from documented donations.

Meanwhile, El Salvador’s publicly reported Bitcoin reserve stood at around 7,790 BTC at the end of September, according to data attributed to the country’s National Bitcoin Office. The figure provides broader context for the IMF’s continued focus on public-sector Bitcoin holdings. The Fund is also pushing for clearer disclosure of public-sector crypto holdings and stronger regulation of digital asset companies.

😘 https://t.co/fNrI4p2yDI pic.twitter.com/hjWLY1jcAB

— Nayib Bukele (@nayibbukele) October 1, 2026

El Salvador Continues to Reduce State Role in Bitcoin

El Salvador has already changed its government-backed Bitcoin operations. The government has transferred majority ownership and operational control of the Chivo crypto wallet to a private operator. The IMF said El Salvador should also remove its remaining public-sector exposure to Chivo.

At the same time, authorities are expected to improve regulation, supervision and governance around crypto assets. These steps form part of El Salvador’s 40-month Extended Fund Facility agreement. The IMF approved the program on February 26, 2025, giving the country access to about $1.4 billion in total financing.

IMF Sees Stronger Economic Growth

Beyond Bitcoin, the IMF said El Salvador’s economy has performed better than expected. Fiscal consolidation has progressed, while reserve and liquidity levels have strengthened. The Fund expects real GDP growth of 4.5% in 2026, up from an estimated 3.9% last year.

Following the IMF announcement, President Nayib Bukele shared the Fund’s assessment on X, writing:

“El Salvador’s economy continues to perform strongly.”

Bukele also shared a message from the U.S. Embassy in El Salvador, writing: “The impressive economic growth of El Salvador and its ambitious reforms continue to inspire confidence in the market and will help attract greater foreign investment.”

The U.S. Embassy congratulated El Salvador on completing the second and third IMF reviews, stating:

“We congratulate El Salvador for concluding the second and third reviews of its program with the IMF. El Salvador’s impressive economic growth and ambitious reforms continue to inspire confidence in the market and will help attract greater foreign direct investment.”

Bukele’s posts and the embassy statement followed the IMF’s approval of the latest program reviews. However, the IMF said further reforms are still needed in areas including public finances, pensions, financial regulation, governance and transparency.

On Bitcoin policy, the IMF still expects El Salvador to limit additional public-sector Bitcoin accumulation and further reduce the state’s direct role in crypto-related activities. The latest waiver allows funding under the existing program to continue as long as those commitments remain in place.