Key Notes
- The IMF cleared SDR 101.96 million, about $138 million, after granting waivers for missed conditions including Bitcoin accumulation.
- The Fund says recent Bitcoin additions were documented private donations and expects no further accumulation outside that exception.
- El Salvador must unwind its remaining public exposure to Chivo and strengthen transparency and oversight of government crypto holdings.
The International Monetary Fund has cleared an immediate disbursement of about $138 million to El Salvador after granting waivers for missed program conditions, including a limit on Bitcoin accumulation. The decision keeps the country’s financing arrangement moving while preserving restrictions on further additions to its public-sector crypto holdings.
The IMF announced on October 1 that its executive board had completed the combined second and third reviews of El Salvador’s Extended Fund Facility. The tranche is denominated in special drawing rights, the Fund’s accounting unit, and totals SDR 101.96 million.
Bitcoin Waiver Comes With Renewed Commitments
The Fund said the waivers rested on corrective measures and renewed commitments from the authorities. Its decision permits the release of financing despite the missed conditions; it does not remove Bitcoin-related requirements from the program.
The distinction matters because the IMF has provided a more specific account of recent reserve additions. In its September 3 staff agreement, the Fund said documentation verified that Bitcoin accumulated since the first review came from private donations and that no public resources were used.
That account establishes the IMF’s stated basis for assessing those additions. A breach of the accumulation condition, by itself, does not establish that President Nayib Bukele’s government used public funds or IMF financing to buy Bitcoin.
Going forward, the Fund expects no further accumulation beyond documented donations. The exception applies to those donations rather than giving the government unrestricted room to expand its holdings through purchases.
Chivo’s Remaining Public Exposure Must Be Unwound
The financing review also covers the government’s involvement in Chivo, the crypto wallet associated with El Salvador’s Bitcoin project. The September statement said majority ownership and operational control had moved to a private operator, while the state retained a minority stake and custody responsibilities for customer assets.
The latest decision welcomes that transfer and calls for the remaining public-sector exposure to be fully unwound. It also prioritizes greater transparency over state crypto holdings and stronger oversight of digital asset providers.
Part of a $1.4 Billion Reform Program
The IMF approved El Salvador’s 40-month arrangement in February 2025, with total access of about $1.4 billion. Its objectives include strengthening public finances, rebuilding reserves and financial buffers, and improving governance and transparency.
The original agreement also addressed Bitcoin risks through legal changes making private-sector acceptance voluntary and requiring taxes to be paid in US dollars. Restrictions on government transactions and purchases formed part of the broader effort to reduce public exposure.
The first review was completed in June 2025. At that stage, the Fund reported that key fiscal and international reserve targets had been met, alongside progress on financial resilience, public reporting and procurement transparency.
The latest approval continues that financing process while leaving Bitcoin compliance under scrutiny. For readers tracking sovereign reserves, it underlines why changes in wallet balances need to be considered alongside ownership, custody and the source of additions.
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