IMF Approves $138M for El Salvador After Bitcoin Waiver

IMF Bitcoin waiver unlocks the next loan tranche

The financing belongs to the 40-month Extended Fund Facility arrangement approved in February 2025. That package provided access to roughly $1.4 billion, with an initial disbursement of about $113 million.

The first review in June 2025 allowed a further $118 million. The IMF then reported cumulative disbursements of about $231 million and urged El Salvador to keep public Bitcoin holdings unchanged while improving consumer and investor protection.

That sequence puts the latest approval in perspective. It is another installment under an established lending arrangement, rather than a new $138 million crypto fund or a replacement for the original program.

The IMF’s Extended Fund Facility explanation describes support for countries facing persistent external financing problems that require structural reforms. Disbursements depend on quantitative performance criteria, while progress on important structural measures is assessed through the program’s broader review process.

In practical terms, completing a review changes whether a country can draw the scheduled financing. It does not make every policy discussed during that review an approved use of the loan proceeds.

The lending framework also creates costs and obligations beyond the review itself. The IMF’s facility factsheet lists a service charge of 50 basis points, equivalent to 0.5%, on each amount drawn, along with commitment fees on funds that remain available. The financing is credit within a reform program, not a donation tied to Bitcoin adoption.

June’s assessment also recorded a new Fiscal Sustainability Law, published financial information on major state-owned enterprises and improved access to public contracts. Those measures illustrate the wider accountability agenda against which the Bitcoin and wallet commitments sit. Crypto policy is one part of the financing relationship.

The October announcement says waivers rested on corrective measures and renewed commitments. A waiver therefore should not be read as deleting the Bitcoin issue from future oversight. The financing decision and the continuing policy constraint can coexist.

September’s staff-level agreement had put the prospective payment at around $140 million, subject to board approval. Both releases identify the same SDR 101.96 million amount, so the different approximate dollar figures do not establish a reduction in the scheduled tranche.

El Salvador’s Bitcoin donations differ from public buying

In September, IMF staff said documentation verified that Bitcoin accumulation since the first review reflected private donations, with no public resources used. That is the institution’s assessment of the documentation, not an independent audit by Daily Crypto Briefs.

The distinction is financial as well as political. An increase in assets held by a government does not, by itself, establish a purchase financed from its budget. Donations, purchases and transfers between existing wallets describe different events.

Bitcoin’s public ledger can show transfers, but a transaction alone does not explain the complete funding arrangement or identify every party’s legal responsibilities. The IMF’s assessment addresses the source of the additions; it should not be turned into an unsupported tally of new market purchases.

The country’s earlier Bitcoin experiment helps explain the scrutiny. The IMF’s original program report described the September 2021 adoption initiative as an effort to improve financial access and make remittances easier and cheaper.

That report said surveys at the project’s peak found only 20% of firms accepting Bitcoin and 4.9% of sales paid in it. It also cited official data showing 1.2% of remittances moving through a crypto wallet. Those are historical observations, not current October 2026 usage rates.

The report separately identified government Bitcoin holdings of about 6,070 BTC. That figure is also historical and should not be presented as today’s reserve balance. The latest financing announcement does not supply a fresh wallet-by-wallet reconciliation.

The policy direction differs from Brazil’s proposed sovereign Bitcoin reserve, which would create an accumulation mandate if enacted. El Salvador is dealing with conditions attached to an active lending program, rather than debating whether to establish a new reserve.

Chivo privatization leaves public exposure to unwind

The September statement said Chivo’s majority ownership and operational control had moved to a private operator, while the government retained a minority stake and custodial responsibilities for customer assets. That distinction limits how broadly the transfer can be described.

A change in ownership, responsibility for operating a wallet and responsibility for holding customer assets are separate questions. Moving the first two does not automatically settle the third or remove every remaining public obligation.

The October statement calls for residual public exposure to be fully unwound. It does not name the operator or give a completion date for that remaining step.

The original February program already linked Bitcoin policy to everyday payments: private-sector acceptance became voluntary and tax payments were restricted to U.S. dollars. It also envisaged gradually reducing government participation in Chivo.

June’s review kept the wallet wind-down on the agenda alongside stronger financial oversight and transparency. The current development is therefore progress within an existing reform sequence, rather than the first announcement of a privatization plan.

The contrast with Kazakhstan’s planned crypto allocation shows why national reserve headlines need their funding terms attached. A stated investment plan, a donated holding and financing subject to policy conditions create different exposures for taxpayers.

Source: Alternative.me, checked October 3. Its Bitcoin-focused index reads 67, or Greed, versus 72 the previous day; it does not measure El Salvador’s program compliance.

The next substantive disclosures are the detailed review report, clearer accounting of public crypto holdings and the terms for ending Chivo’s remaining state exposure. Until then, the approved financing is concrete, while the Bitcoin accumulation limit continues.