El Salvador has reached a staff-level agreement with the International Monetary Fund that could unlock approximately $140 million in additional financing under its Extended Fund Facility. The IMF also confirmed that Bitcoin accumulated since its June 27, 2025 review came from private donations rather than public resources, drawing a clearer line between recent BTC additions and government spending.
In its official September 3 statement, the IMF said the agreement covers the combined second and third reviews of El Salvador’s 40-month program. The $140 million disbursement remains conditional on approval by the IMF Executive Board and completion of agreed prior actions, meaning the funding has not yet been released.
IMF Confirms Bitcoin Came From Private Donations
Bitcoin policy remains a central component of El Salvador’s commitments under the financing arrangement. The IMF said authorities provided documentation verifying that Bitcoin accumulation since the first review reflected private donations and did not use public funds, addressing a longstanding point of scrutiny surrounding the country’s crypto holdings.
The Fund also said no further Bitcoin accumulation beyond those documented donations is expected. That position is consistent with the IMF’s earlier requirement that El Salvador limit additional public-sector exposure to Bitcoin, a condition reinforced when the Executive Board completed the first program review on June 27, 2025.
The broader EFF was approved in February 2025 with total access of about $1.4 billion. The program included measures aimed at reducing Bitcoin-related fiscal risks, strengthening financial regulation and improving transparency around public crypto holdings. The latest review suggests El Salvador is continuing to separate its sovereign finances from additional direct Bitcoin accumulation while preserving existing holdings.
Chivo has undergone a similar restructuring. The IMF reported that majority ownership and operational control of the government-backed e-wallet have been transferred to a private operator, while the Salvadoran government retains a minority stake and custodial responsibilities for customer assets.
Chivo Shift Reduces Direct State Involvement
The Chivo transition substantially reduces the government’s operational role in the wallet without eliminating public-sector involvement entirely. The state remains connected through its minority ownership and custody responsibilities, making continued transparency and risk management important elements of the IMF program.
The Fund also said agreements were reached on further modernization of El Salvador’s legal, regulatory and supervisory framework for digital assets. Future reforms are expected to focus on stronger governance and risk controls for public-sector crypto holdings, alongside broader financial-sector and anti-money-laundering measures.
For creditors and market participants, the latest review provides greater clarity around how recent Bitcoin accumulation was financed. Confirmation that public money was not used for the documented additions reduces one source of fiscal uncertainty, although Bitcoin exposure, custody responsibilities and transparency around government-controlled wallets remain relevant risks.
The immediate next step is procedural. IMF staff will prepare the review for consideration by the Executive Board after the agreed prior actions are completed. Only Board approval would make the roughly $140 million available, making continued compliance with the program’s fiscal, governance and Bitcoin-related commitments central to the next stage of financing.
