IMF Approves $138 Million for El Salvador Despite Missed Bitcoin Targets

Summary

• IMF approved $138 million for El Salvador despite missed Bitcoin targets, granting waivers based on corrective measures and renewed commitments.
• Private donations accounted for Bitcoin accumulation since June 2025, while authorities transferred the majority of Chivo ownership and control to private management.
• The IMF expects no further Bitcoin accumulation beyond documented donations and seeks stronger cryptocurrency regulation, governance, and public holdings transparency.

 

El Salvador secured approval for $138 million in IMF financing despite missing Bitcoin accumulation targets under its broader economic reform program. According to the IMF, its Executive Board completed the second and third reviews of the country’s financing arrangement on Thursday.

Directors granted waivers for certain unmet performance criteria, citing corrective measures and renewed commitments from Salvadoran authorities. The decision unlocks another installment under the country’s $1.4 billion Extended Fund Facility, which runs for 40 months.

Alongside the formal approval, the lender reiterated its expectation that El Salvador would reduce government involvement in Bitcoin activities. Officials also recorded progress in financial sector reforms, fiscal transparency, and measures against money laundering and terrorist financing.

Additionally, authorities transferred majority ownership and operational control of the Chivo Bitcoin wallet to a private operator. The government retained a minority stake and custodial responsibilities for customer assets, according to the lender’s September assessment.

Also Read: Japan Adds Garantex to Asset Freeze List in Expanded Russia Sanctions

IMF Links Bitcoin Holdings Growth to Private Donations

Salvadoran authorities provided documentation showing that private donations accounted for Bitcoin accumulation since the program’s first review in June 2025. The IMF reported that those additions involved no public resources, addressing questions about government spending on cryptocurrency holdings.

Its assessment distinguished increases through private donations from additional Bitcoin purchases financed with government resources under the arrangement. Earlier questions emerged when El Salvador announced in November 2025 that it had acquired 1,090 Bitcoin worth approximately $100 million.

September’s explanation addressed the source of those additions, while the board subsequently granted waivers concerning missed Bitcoin accumulation criteria. Beyond the documented donations, the IMF expects no further Bitcoin accumulation as authorities implement their commitments under the financing program.

Meanwhile, the lender identified stronger cryptocurrency regulation, governance, and transparency around public holdings as priorities for further reform. Those commitments accompany efforts to reduce the state’s remaining involvement in Bitcoin activities and strengthen oversight of digital assets.

The approval advances El Salvador’s IMF financing arrangement while preserving existing requirements concerning Bitcoin accumulation, public holdings, and government cryptocurrency operations.

Also Read: NEAR Tests $4.60 Support as September Rally Gives Way to Consolidation

The post IMF Approves $138 Million for El Salvador Despite Missed Bitcoin Targets appeared first on 36Crypto.