- El Salvador could receive $140M pending IMF Executive Board approval and completion of prior actions.
- The country has used no public funds for BTC purchases since June 2025.
El Salvador and the IMF have reached a staff-level agreement on the combined second and third reviews of the country’s 40-month Extended Fund Facility arrangement. Subject to IMF Executive Board approval and the completion of agreed prior actions, El Salvador stands to receive approximately $140 million. It is equivalent to SDR 101.96 million in additional funding.
This brings total disbursements under the EFF to a significant level, following the programme’s approval on February 26, 2025. This has a total access of SDR 1,033.92 million, approximately $1.4 billion. The first review was concluded on June 27, 2025, with SDR 172.32 million disbursed so far.
The Economy Is Outperforming
The macro picture for El Salvador is stronger than expected. Real GDP growth exceeded projections in 2025 and is forecast to reach 4.5% in 2026. It is likely driven by investment, private consumption, remittances, tourism, and capital inflows. Security improvements and investor confidence have played a crucial role in that trajectory.
The NFPS primary surplus is expected to strengthen from 2.9% of GDP in 2026 to 3.7% by 2027, consistent with the Fiscal Responsibility Law target of reducing the public debt-to-GDP ratio to 80% by 2030. The programme has also contributed to a measurable decline in poverty through improved efficiency in public services.
Bitcoin Is No Longer a Public Spending Line
The IMF confirmed that El Salvador has provided documentation verifying that all Bitcoin accumulated since the first review in June 2025 came entirely from private donations. Notably, no public resources were used. Going forward, no further BTC accumulation beyond documented donations is expected, a condition that forms part of the framework agreed with IMF staff.
Moreover, the Chivo e-wallet, once government-operated, has had its majority ownership and operational control transferred to a private operator. The government retains a minority stake and custodial responsibilities for customer assets. Also, efforts are underway to enhance transparency around Bitcoin holdings across various wallets.
In addition, the IMF and El Salvador have also agreed to modernise the legal, regulatory, and supervisory framework for digital assets and strengthen governance and risk-management arrangements for public-sector crypto holdings.
Market impact might be like El Salvador stepping back from public BTC accumulation removes a sovereign buying narrative from the market. Furthermore, the agreement signals the country is prioritising macroeconomic stability and institutional credibility over crypto-forward policy. The IMF programme compliance and Bitcoin maximalism don’t easily coexist at the government level.
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