The International Monetary Fund has agreed an immediate disbursement of around $138 million to El Salvador under the country’s $1.4 billion financing programme, despite the government missing some performance principles under the agreement.
IMF Grants Waivers Despite Missed Targets
The IMF’s Executive Board finished the second and third criticisms of El Salvador’s 40-month Extended Fund Facility arrangement on Thursday. While some performance goals were not met, including those related to Bitcoin accretion, the IMF granted waivers based on what it described as robust corrective measures and renewed commitments from the country.
The IMF Executive Board completed the Second and Third Reviews under El Salvador’s EFF arrangement, allowing for an immediate disbursement equivalent to SDR 101.96 million (about US$138 million). https://t.co/T60CdnT87c
— IMF (@IMFNews) October 1, 2026
The decision follows the IMF’s continued watch of El Salvador’s reforms and its approach to Bitcoin. El Salvador has been tightly associated with Bitcoin after its adoption as a legal tender and the establishment of the state-backed organization around its use.
Chivo Wallet Control Shifts To Private Operator
According to the IMF, El Salvador has made progress in several other areas enclosed by the programme. These include financial-sector reforms, developments in fiscal transparency, anti-money-laundering and counter-terrorist-financing measures, as well as changes connecting the government’s Chivo Bitcoin wallet.
The IMF said majority ownership and control of the government’s Chivo Bitcoin wallet had been transferred to a private operator. The move forms part of broader efforts to reduce direct government involvement in Bitcoin-related activities.
The Fund also said El Salvador would continue working to strengthen crypto-asset regulation and governance while improving transparency around crypto assets held by the public sector.
No Further Bitcoin Buying Planned
Importantly, the IMF stated that no further Bitcoin accumulation is envisaged beyond documented donations. This signals a more limited approach to government involvement in acquiring additional Bitcoin under the current programme.
The latest disbursement therefore comes with continued expectations from the IMF around El Salvador’s Bitcoin policy, financial reforms and transparency. While the country missed certain performance criteria, the Fund’s decision to grant waivers allows the financing programme to continue while El Salvador implements its renewed commitments and corrective measures.
Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV
You need to login in order to Like
Leave a comment