The lending program moves forward while the state’s retreat from crypto activities remains on the agenda. Chivo’s controlling stake and management have passed to a private operator.
The International Monetary Fund approved roughly $138 million in financing for El Salvador despite breaches of program conditions, including those covering Bitcoin accumulation. Its October 1 decision grants waivers for past noncompliance while leaving its stance on further state Bitcoin accumulation intact.
According to the IMF’s official statement, completing the second and third reviews makes SDR 101.96 million available for immediate disbursement. The release puts the dollar equivalent at about $138 million. It is a tranche of El Salvador’s existing lending arrangement, rather than a separate new fund for buying Bitcoin.
The waiver does not remove the Bitcoin condition
The IMF explicitly says some performance criteria were missed, including those related to Bitcoin accumulation. It granted waivers on the strength of corrective measures and renewed commitments from the authorities.
“No further accumulation of bitcoins is expected beyond documented donations.”
Public crypto holdings and their management remain part of the review. The IMF wants greater disclosure of the state’s assets, stronger supervision of service providers and amendments to the Digital Asset Issuance Law. The press release does not itemize the amount of Bitcoin involved in the breach or individual purchase dates.
Approving the payment is not permission to buy more Bitcoin. The waiver addresses program conditions that were not met. Documented donations are treated separately while the forward-looking stance on public accumulation remains.
Chivo moves into private control
The Chivo wallet is one part of the effort to reduce the state’s role in crypto. The IMF welcomes the transfer of its controlling stake and control to a private operator. It also calls for the public sector’s remaining exposure to end. The state’s financial involvement with the platform has therefore not yet been fully unwound.
The assessment goes beyond counting coins. Management of the public wallet, disclosure of holdings and regulation of providers are addressed together. The dollar value of reserves can change with the Bitcoin price; the program’s accumulation condition is a separate obligation from daily market movements.
A $1.4 billion program moves forward
El Salvador’s 40-month Extended Fund Facility arrangement was approved on February 26, 2025, with access to about $1.4 billion overall. The latest tranche advances a program covering fiscal discipline, reserve rebuilding, financial oversight and transparency reforms.
The IMF says economic activity has exceeded expectations, supported by improving security and investor confidence. Its official table projects growth of 4.5% in 2026 and 4% in 2027; these are forecasts, not completed annual results. For readers following Bitcoin developments, the decision keeps financing moving alongside the commitment to reduce the state’s involvement in crypto.
