- The IMF approved an immediate $139 million disbursement to El Salvador under a $1.4 billion financing program.
- The fund granted a waiver after El Salvador failed to meet a performance criterion related to further bitcoin accumulation.
- The IMF urged President Nayib Bukele’s government to stop increasing state bitcoin holdings and continue reducing its involvement in the cryptocurrency sector.
The International Monetary Fund approved a $139 million disbursement to El Salvador after granting a waiver over the country’s failure to meet a condition related to further bitcoin accumulation, Bloomberg reported on Oct. 1, 2026. The decision allows El Salvador to receive the funds immediately under its $1.4 billion Extended Fund Facility program despite the missed performance criterion.
The IMF’s Executive Board completed the second and third reviews of the financing program. The fund said El Salvador had not met some performance criteria, including requirements related to bitcoin accumulation, but granted a waiver based on corrective measures taken by the government and updated commitments.
“No further accumulation of bitcoin, beyond documented donations, is envisaged,” the IMF said.
IMF calls for reduced state role in cryptocurrency
The fund urged the government of President Nayib Bukele to refrain from further bitcoin accumulation and continue scaling back the state’s involvement in the cryptocurrency sector.
The government has transferred most ownership and control of the state-run Chivo cryptocurrency wallet to a private operator, according to the IMF. El Salvador is expected to end its involvement in the project fully.
El Salvador recognized bitcoin as legal tender alongside the U.S. dollar in 2021. Although cryptocurrency use among the population has remained limited, the government has built a sizable bitcoin reserve.
Economic growth exceeds expectations
The IMF said economic activity in El Salvador exceeded expectations because of improved security conditions and rising investor confidence. The fund forecasts economic growth of 4.5% in 2026 and 4% in 2027, Bloomberg reported.
The next phase of the IMF program will focus on strengthening fiscal sustainability, rebuilding external reserves and improving the resilience of the financial sector. It will also cover governance and transparency reforms and support stronger, more inclusive economic growth.
In February 2026, El Salvador said it would launch the Bitcoin Diploma 2.0 educational program.
Source: Incrypted
