El Salvador Secures $138M IMF Tranche After Bitcoin Waivers

The International Monetary Fund approved an immediate disbursement of approximately $138 million to El Salvador on Thursday following the second and third evaluations of the country's 40-month Extended Fund Facility (EFF) arrangement, a $1.4 billion financing program. Although El Salvador missed several performance criteria, including targets tied to its ongoing Bitcoin accumulation strategy, the IMF granted waivers citing strong corrective measures and renewed commitments from President Nayib Bukele's administration.

The IMF noted meaningful progress across financial sector reforms, fiscal transparency, anti-money laundering and counter-terrorist financing (AML/CFT) frameworks, and the transfer of majority ownership of the state-run Chivo Bitcoin wallet to a private operator. The lender also confirmed that El Salvador refrained from purchasing Bitcoin with public funds after its first program review in June 2025, with subsequent holdings growth attributed entirely to private donations. As of November 2025, El Salvador reported holdings of 1,090 BTC valued at roughly $100 million.

Despite the continued disbursements, the IMF signaled that further restrictions on state involvement in digital assets are forthcoming. No additional Bitcoin accumulation is anticipated beyond the documented donations, and the Salvadoran government will be expected to maintain a minority stake in Chivo alongside limited custodial responsibilities. The Fund also emphasized that strengthening crypto-asset regulation, governance, and public-sector transparency remains a central condition for future program reviews.

The arrangement leaves El Salvador navigating a delicate balance between its pioneering adoption of Bitcoin as legal tender, first formalized in 2021, and the fiscal discipline demanded by international lenders. With the Chivo transition largely complete and donor-funded accumulation policy in place, Bukele's government appears to have secured short-term breathing room, though the IMF's conditions signal that the country's broader crypto ambitions may continue to face structural limits.