The International Monetary Fund has reached a staff-level agreement with El Salvador covering the second and third reviews under the Extended Fund Facility arrangement. If approved by the IMF Board, the deal could unlock approximately $140 million in funding aimed at supporting the country’s economic recovery and development. The announcement, shared by @IMFNews, has generated optimism about investor confidence and market stability in El Salvador.
In a separate but related disclosure, the IMF confirmed that El Salvador has not used public funds to acquire Bitcoin since June 2025. Documentation provided by Salvadoran authorities shows that all Bitcoin accumulated since the first EFF review came from private donations. The country currently holds more than 7,600 BTC, valued at over $500 million. However, reported transaction data indicate a sharp decline in Bitcoin usage, with only one transaction recorded in the past month, raising questions about the sustainability of Bitcoin as an everyday currency.
The potential IMF funding adds another layer to El Salvador’s evolving Bitcoin strategy. While the confirmation of private donations may reduce concerns about public fund misuse, the decline in transactions suggests adoption challenges. Market participants are watching whether the IMF Board approves the funding and how El Salvador balances its Bitcoin holdings with broader economic stabilization goals.
