TLDR
- The IMF approved about $138 million for El Salvador after completing two reviews of its $1.4 billion loan program.
- The IMF waived a breach of its Bitcoin accumulation rule after El Salvador showed the coins came from private donations.
- The IMF said no further Bitcoin accumulation is expected beyond documented donations.
- Majority control of the Chivo wallet has moved to a private operator, and the IMF wants the state’s remaining stake removed.
- The IMF projects El Salvador’s economy will grow 4.5% in 2026 and 4% in 2027.
The International Monetary Fund has approved about $138 million for El Salvador. The money was released after the IMF waived a breach of a rule that limits Bitcoin collection by the government.
The IMF Executive Board finished the second and third reviews of El Salvador’s loan program on Oct. 1. The payout equals SDR 101.96 million. Bloomberg reported the figure as $139 million.
El Salvador’s 40-month Extended Fund Facility was approved on Feb. 26, 2025. It gives the country access to about $1.4 billion in total.
IMF Raises El Salvador Growth Forecast
The IMF said El Salvador’s economy has done better than expected. It projects real GDP growth of 4.5% in 2026, after an estimated 3.9% in 2025. Growth is forecast at 4% in 2027.
The Fund linked the growth to investment, consumer spending, remittances and tourism. It also pointed to improved security and investor confidence.
Reserve and liquidity targets were comfortably met. Gross international reserves are projected at $5.35 billion in 2026 and $6.17 billion in 2027.
The primary fiscal balance is forecast at a surplus of 2.9% of GDP this year. That is expected to rise to 3.7% next year.
The IMF said pension and civil service reforms had been delayed and will now move forward. It also called for tighter spending controls and better tax collection.
Why the IMF Waived the Bitcoin Breach
The board found that El Salvador did not meet several performance targets. One of them covered Bitcoin accumulation by the public sector.
The original program banned voluntary Bitcoin buying by the government. Earlier documents defined this as purchases or mining. Bitcoin taken through seizures or similar law enforcement actions was not counted.
Bitcoin had appeared in government-controlled wallets since the first review. El Salvador gave the IMF documents showing the coins came from private donations. The IMF said no public money was used.
Donor names and individual donation amounts were not made public. The IMF granted waivers based on what it called strong corrective measures and renewed commitments.
The decision does not allow the government to start buying Bitcoin again. The program also requires El Salvador to reduce its role in the Chivo wallet, which the government launched as part of its Bitcoin rollout.
In September, the IMF confirmed that majority ownership and control of Chivo had moved to a private operator. The government kept a minority stake and custody duties for customer assets.
El Salvador changed its Bitcoin Law in 2025. Businesses no longer have to accept Bitcoin, and taxes must be paid in U.S. dollars.
The IMF wants better reporting on crypto held by public bodies. It also called for stronger rules for crypto service providers, including changes to the Digital Asset Issuance Law.
Dan Katz, the IMF’s First Deputy Managing Director, chaired the board discussion. He said the remaining public-sector exposure to Chivo “should be fully unwound” and that “no further Bitcoin accumulation is expected beyond documented donations.”
