IMF Staff Deal Could Unlock $140M for El Salvador as Bitcoin Curbs Tighten

Key Facts

IMF staff and El Salvador’s authorities reached a staff-level agreement on reviews of the country’s financing program, potentially making about $140 million available. Access to the money remains subject to Executive Board approval and completion of agreed prior actions.

The announcement is not final approval for a disbursement. A staff-level agreement reflects the IMF team’s preliminary assessment, while the Executive Board must complete the reviews before the funds become available.

The agreement is part of a 40-month Extended Fund Facility approved by the Executive Board on February 26, 2025, with total access of about $1.4 billion. The IMF said SDR 172.32 million has been disbursed under the program so far.

Program steps have included reducing the state’s role in the Bitcoin ecosystem. Majority ownership and operational control of the government-backed Chivo wallet were transferred to a private operator, while the government retained a minority stake and custodial responsibilities for customer assets.

The IMF said documentation showed that Bitcoin accumulated since the first review came from private donations and did not use public resources. It also said no further Bitcoin accumulation beyond documented donations is expected.

On the economy, the IMF expects real GDP to grow 4.5% in 2026. It projects the nonfinancial public sector’s primary surplus to rise from 2.9% of GDP to 3.7% in 2027, as part of a path targeting a reduction in the debt ratio to 80% by 2030.

The development therefore matters primarily as progress on sovereign financing and fiscal reforms, rather than as an institutional endorsement of Bitcoin. Executive Board approval and completion of the prior actions are the decisive next steps before the tranche becomes available.