The International Monetary Fund has made a positive decision regarding the first review of the extended funding program for El Salvador, which is set for 40 months. This step opens up access to nearly $120 million in additional funding for the country, but on the condition that the government adheres to strict requirements to limit Bitcoin operations.
This is reported by Business • Media
Conditions for IMF and El Salvador Cooperation
The Fund highly praised the results of implementing structural reforms and achieving most of the goals set for the first phase of the program. At the same time, the IMF clearly outlined its position regarding the use of cryptocurrency by the public sector in El Salvador. In particular, the organization insists on maintaining the volume of Bitcoins held by the government without further purchases.
“Most of the program’s goals set for the first review were easily achieved, and the implementation of structural indicators is progressing well,” stated the joint statement from Rodrigo Cubeddu, Deputy Director of the Western Hemisphere Department, and Raúl Torres, head of the IMF mission in El Salvador.
Among additional requirements is the withdrawal of the public sector from participation in the Chivo app by the end of July 2025. Furthermore, El Salvador must continue to refrain from purchasing Bitcoins, which is part of the broader $3.5 billion IMF credit program.
Government Response and Legislative Changes
Despite the Fund’s conditions, El Salvador’s official crypto wallet has increased by 89.03 BTC since March 4, 2025, and currently holds 6,190.18 BTC, equivalent to about $674 million at the current rate. This indicates the country’s continued accumulation of its crypto reserves despite the IMF’s restrictions.
Back in March, President Nayib Bukele’s government agreed to the IMF’s demand to revoke Bitcoin’s mandatory status as a means of payment and to prohibit the public sector from voluntarily accumulating cryptocurrency. In January 2025, corresponding changes were made to the legislation, excluding the mandatory acceptance of Bitcoin by businesses.
The IMF also noted positive shifts in El Salvador’s economy, including a decrease in inflation, a reduction in the current account deficit, and an increase in trust in the country’s financial system despite external challenges.
“Timely implementation of the anti-corruption law and increased transparency are key to long-term financial stability,” emphasized the IMF.