The International Monetary Fund has completed the second and third reviews of El Salvador’s Extended Fund Facility, approving an immediate disbursement of SDR 101.96 million, or about $138 million, after granting waivers for missed performance criteria, including one tied to Bitcoin accumulation.
El Salvador, which made Bitcoin legal tender in 2021, signed the current IMF loan agreement in 2025 under conditions requiring the public sector to mitigate risks from Bitcoin activities and limit accumulation. The EFF was approved on February 26, 2025, with a 40-month term and total access of about $1.4 billion.
According to Bloomberg and Reuters, the IMF acknowledged that some performance criteria had not been met, but said waivers were granted based on corrective measures and renewed commitments. Documents provided by El Salvador showed that Bitcoins accumulated since the initial review reflected private donations rather than the use of public funds.
No further state accumulation is envisaged beyond documented donations. IMF First Deputy Managing Director Dan Katz said the state’s involvement in Bitcoin-related activities is being unwound as regulations are enhanced. He described the transfer of majority ownership and control of the Chivo e-wallet to a private operator as a welcome step, while stressing that residual public-sector exposure should be fully unwound.
The IMF also noted progress in anti-money laundering controls, fiscal transparency, and financial sector reform. Economic activity exceeded expectations, with real GDP growth estimated at 3.9% for 2025 and projected at 4.5% for 2026. Gross international reserves were estimated at $4.814 billion for 2025 and projected at $5.346 billion in 2026.
In markets, Bitcoin pushed back above $86,000, gaining roughly 3% over 24 hours after spending much of the week near $83,000 to $85,000. Traders now view $87,000 as the next nearby hurdle, though BTC remains below its record high.
