The International Monetary Fund approved the immediate disbursement of about $138 million to El Salvador under the country’s $1.4 billion financing program, even as some performance criteria went unmet — with El Salvador IMF Bitcoin waivers papering over missed targets on the accumulation front.
The IMF’s Executive Board completed the second and third reviews under El Salvador’s 40-month Extended Fund Facility arrangement on Thursday, it said in a press release.
Waivers ‘based on strong corrective measures’
While certain performance criteria were not met, including on the Bitcoin accumulation front, the IMF granted waivers “based on strong corrective measures and renewed commitments.”
The agency noted El Salvador has made progress on financial sector reforms, fiscal transparency, AML/CFT reforms, and the transfer of majority ownership and control of the government’s Chivo Bitcoin wallet to a private operator.
“Efforts will continue to reduce the state’s involvement in Bitcoin-related activities, strengthen crypto-asset regulation and governance, and enhance transparency regarding public-sector crypto-asset holdings,” the IMF said, adding: “No further Bitcoin accumulation is envisaged beyond the documented donations.”
Private donations, not public money
The waiver question has dogged the program since El Salvador said in November 2025 that it had acquired 1,090 BTC worth $100 million, renewing questions about compliance with the IMF arrangement. The lender addressed it directly: documents supplied by Salvadoran authorities verified that the accumulation came from private donations, so the increase in holdings did not reflect government-financed purchases.
The IMF also confirmed that majority ownership and operational control of the Chivo wallet has been transferred to a private operator, with the government retaining a minority stake and custodial responsibilities.
The $138 million release keeps the program on track while the state progressively steps back from direct Bitcoin activity — the compromise structure both sides have been negotiating since the first review in June 2025.
Source: Cointelegraph
