El Salvador Receives $138 Million From IMF After Waivers

The International Monetary Fund approved the immediate disbursement of about $138 million to El Salvador under the country’s $1.4 billion financing program, according to an announcement by the lender. The Executive Board completed the second and third reviews under El Salvador’s 40-month Extended Fund Facility arrangement.

While certain performance criteria were not met, including targets related to Bitcoin accumulation, the lender granted waivers based on strong corrective measures and renewed commitments from Salvadoran authorities.

Governance and Wallet Control

The financial agency noted progress in financial sector reforms, fiscal transparency, anti-money laundering measures, and the transfer of majority ownership and control of the government Chivo Bitcoin wallet to a private operator. The government retains a minority stake and custodial responsibilities for the wallet.

According to the International Monetary Fund, documents supplied by Salvadoran authorities verified that recent increases in holdings came from private donations rather than additional government-financed purchases. The agency stated that no further Bitcoin accumulation is envisaged beyond documented donations.

Key facts

• The International Monetary Fund approved the immediate disbursement of about $138 million to El Salvador.
• The funds fall under El Salvador's $1.4 billion financing program through an Extended Fund Facility arrangement.
• Waivers were granted despite missed performance criteria regarding Bitcoin accumulation based on corrective measures.
• Majority ownership and operational control of the Chivo Bitcoin wallet were transferred to a private operator.
• Officials stated no further Bitcoin accumulation is envisaged beyond documented donations.