IMF releases $138 million to El Salvador, waives missed bitcoin accumulation criterion

The International Monetary Fund's Executive Board on Oct. 1 (local time) completed the combined second and third reviews of El Salvador's Extended Fund Facility (EFF) arrangement, allowing an immediate disbursement of SDR 101.96 million, or about $138 million. The SDR (Special Drawing Right) is the IMF's unit of account used in providing financial support to member countries. The IMF said El Salvador had missed certain performance criteria, including on the bitcoin accumulation front, but granted waivers based on "strong corrective measures and renewed commitments."

The 40-month arrangement was approved by the IMF Executive Board on Feb. 26, 2025, with total access of SDR 1,033.92 million (about $1.4 billion). The first review was completed on June 27, 2025, by which point SDR 172.32 million had been disbursed. The combined second and third reviews went to the board after IMF staff and the Salvadoran authorities reached a staff-level agreement on Sept. 3.

Bitcoin holdings were among the missed targets

At the first review in June 2025, the IMF called on El Salvador to keep the public sector's bitcoin holdings unchanged and to expedite the winding down of its participation in the government e-wallet Chivo. The board at the time stressed that the public sector should not increase its overall bitcoin holdings.

In this week's press release, the IMF said "certain performance criteria were not met, including on the Bitcoin accumulation front." It waived the breaches after El Salvador put forward corrective measures and renewed its commitments. The IMF said efforts will continue to reduce the state's involvement in bitcoin-related activities and to improve transparency over public-sector crypto holdings.

IMF says increase in bitcoin holdings came from donations

In its September staff-level agreement statement, the IMF said "documentation has been provided verifying that Bitcoin accumulation since the first review reflects private donations and that no public resources were used." In its Oct. 1 press release, the IMF said "no further Bitcoin accumulation is envisaged beyond the documented donations."

"The state's involvement in Bitcoin-related activities is being unwound while related regulations are enhanced."

Dan Katz, IMF First Deputy Managing Director

Katz named greater transparency and disclosure of public-sector crypto holdings, and stronger regulation and supervision of crypto asset providers, including through amendments to the Digital Asset Issuance Law, as priorities. The IMF published the staff report for the reviews on Oct. 2. The report notes that presidential, congressional and municipal elections are slated for February 2027.

Chivo goes private, with the state keeping a minority stake

Majority ownership and operational control of Chivo have been transferred to a private operator. According to the IMF's September statement, the government retained a minority stake and custodial responsibilities for customer assets. The IMF called the transfer "a welcome step" but said the residual public-sector exposure should be fully unwound.

Economic indicators have improved. By the IMF's estimate, El Salvador's real GDP grew 3.9% in 2025, and the fund put 2026 growth at 4.5%. The staff-level agreement targets a primary surplus rising from 2.9% of GDP this year to 3.7% next year, and the IMF said reserve and liquidity targets were comfortably met.

Government wallet holds 7,794 BTC

The public explorer run by El Salvador's National Bitcoin Office showed government holdings of 7,794.37 BTC on the afternoon of Oct. 4. Holdings rose by 31 BTC over the past 30 days and by 8 BTC over the past seven days, and the transaction history shows a continuing series of 1 BTC deposits.

Bitcoin traded at $85,315 on Binance at 8:34 p.m. KST on Oct. 4. At the same time it was 115,814,000 won on Upbit's Korean won market, putting the kimchi premium (the gap between prices on Korean exchanges and global markets) at about 0.66%, based on an exchange rate of 1,348.6 won per dollar.