El Salvador will receive an immediate disbursement of about $138 million after the International Monetary Fund completed two reviews under the country’s $1.4 billion program and approved waivers for missed conditions. One of those breaches involved a restriction linked to Bitcoin accumulation by the public sector.
The IMF said the violation did not involve public spending. According to program documentation, the additional Bitcoin came from private donations rather than government resources, allowing the Fund to waive the missed condition while keeping the broader limits in place.
Board decision keeps core Bitcoin limits intact
The IMF’s Executive Board took the decision on Oct. 1. While it cleared the latest payout, the Fund stressed that the waiver should not be read as permission for El Salvador to resume state-funded Bitcoin purchases.
Under the current arrangement, no further Bitcoin accumulation is expected beyond documented donations. The original program included a continuous restriction on voluntary Bitcoin accumulation by the public sector, and the IMF said that condition still stands despite the waiver.
Fund pushes for smaller state role in crypto
The Bitcoin issue is only one part of the IMF program. The Fund is also requiring El Salvador to keep reducing direct public involvement in the Chivo wallet, which has been a central part of the country’s state-backed crypto infrastructure.
According to the program terms, majority ownership and operational control of Chivo should be transferred to a private operator. The government would keep only a minority stake and continue custodial responsibilities for customer assets. The IMF said it wants the remaining public-sector exposure removed and the state’s involvement fully unwound.
Improved economic outlook supports the payout
The disbursement comes as the IMF reported stronger economic activity in El Salvador. The Fund now expects real GDP growth of 4.5% in 2026 and 4% in 2027.
It said the outlook is being supported by investment, private consumption, remittances, tourism, and capital inflows. The IMF also projects improvements in reserves and in the fiscal balance, with a surplus of 2.9% of GDP in 2026 and 3.7% in 2027.
Disclosure and legal changes remain ahead
The IMF said El Salvador must continue providing stronger disclosure around public crypto holdings. That includes better reporting on crypto assets controlled by public bodies and updated information on government-controlled wallets.
Beyond disclosures, the Fund is calling for stronger rules for digital-asset companies, public crypto holdings, and financial-sector oversight. It also pointed to amendments to the Digital Asset Issuance Law and reiterated that public Bitcoin exposure should not expand beyond verified donations while the remaining state exposure to Chivo is wound down.
Source: crypto.news