El Salvador has secured $138 million in funding from the International Monetary Fund after the lender granted waivers for missed program targets, including criteria linked to the country's Bitcoin accumulation. The disbursement follows the completion of the second and third reviews under El Salvador's 40-month Extended Fund Facility, a financing arrangement worth about $1.4 billion in total under which financing is released in installments as reviews are completed.

According to the IMF's official press release, the IMF Executive Board approved the immediate release of SDR 101.96 million (Special Drawing Rights, the IMF's unit of account), equivalent to approximately $138 million. Although El Salvador did not meet some of the agreed targets, the Fund cited corrective measures and renewed policy commitments when granting the waivers. The decision keeps the financing program moving forward while maintaining tighter conditions around the government's Bitcoin activities.

The Board's approval followed a staff-level agreement on the combined reviews reached in early September, as announced in an earlier IMF statement.

Bitcoin Accumulation Waiver Remains Central

Bitcoin accumulation was a key issue in the latest rounds of program reviews. The IMF said El Salvador will not be expected to accumulate additional Bitcoin beyond documented donations. The lender is also seeking increased transparency regarding the government's crypto asset holdings, together with better regulation, supervision, and governance of crypto asset providers.

The clarification comes after earlier controversy surrounding the growth of El Salvador's Bitcoin holdings following the first review of the IMF program. In November 2025, the government reported that it had accumulated 1,090 BTC, valued at approximately $100 million. The IMF later said documents supplied by Salvadoran authorities showed the additional accumulation came from private donations rather than government-funded purchases.

Chivo Wallet Control Moves to Private Hands

The IMF also noted that majority ownership and control of El Salvador's Chivo Bitcoin wallet, the government-backed wallet launched alongside the country's adoption of Bitcoin as legal tender in 2021, have been transferred to a private entity. The government retains minority shares and custodial responsibilities, but its direct participation in running the wallet has been minimized. The Fund views the transfer as an element of the broader reform process.

According to Swissinfo, the transfer is a step toward reducing the Salvadoran government's involvement in Bitcoin activities. The report also highlighted the IMF's call for stricter crypto regulation, greater transparency regarding digital assets held by the public sector, and a reduced state role in cryptocurrencies.

The restructuring of the Chivo wallet illustrates how IMF requirements are shaping El Salvador's crypto policy. The government is not required to stop using Bitcoin entirely, but the general direction of the program involves less state participation and greater private sector engagement.

Economic Reforms Underpin the Disbursement

The IMF's approval was not contingent solely on the country's cryptocurrency-related measures. It also reflected progress on financial sector reforms, fiscal transparency, anti-money laundering, and anti-terrorist financing efforts. Fiscal consolidation has largely remained on track with program targets, while liquidity and reserves have improved over the review period.

The Fund's economic assessment was also positive. The IMF expects El Salvador's real GDP to grow by 4.5% in 2026, after estimated growth of 3.9% in 2025. According to the IMF, economic performance has been better than expected owing to improvements in security and investor confidence in the economy.

For El Salvador, the approval provides additional financing as the government continues implementing reforms under the $1.4 billion program. For the cryptocurrency industry, it signals that future government involvement with Bitcoin will take place under closer regulation.

Continued Push for Crypto Disclosure Reforms

Looking ahead, the IMF wants the government to reduce remaining risks related to Bitcoin, improve disclosure of crypto assets owned by the public sector, and strengthen crypto-asset regulations. The Fund also expects El Salvador to implement its promised reforms in future reviews, which will act as the next checkpoints for the country's crypto-related commitments.

In sum, the financing decision delivers fresh financial support to El Salvador while placing limits on the state's approach to Bitcoin in several areas. El Salvador retains the freedom to hold Bitcoin, but under the new arrangement the emphasis falls on documented donations, private operation of the Chivo wallet, and increased regulation and transparency.