IMF reaches staff-level agreement for $140 million aid to El Salvador

Sep 3, 2026

The IMF reached a staff-level agreement with El Salvador on its program reviews, unlocking $140 million in funding. The deal was enabled by documentation showing El Salvador's recent Bitcoin accumulation was funded by private donations rather than public money. Additionally, El Salvador transferred control of its Chivo wallet to a private operator and agreed to regulatory reforms, while the IMF projected a robust 4.5% GDP growth rate for the country in 2026.

IMF staff-level agreement

▪International Monetary Fund staff reached a staff-level agreement with El Salvador on the combined second and third reviews of its 40-month Extended Fund Facility program, unlocking approximately $140 million in funding pending Executive Board approval
▪The $140 million funding tranche is part of a total $1.4 billion Extended Fund Facility approved for El Salvador in February 2025

Bitcoin private donation funding

▪El Salvador's National Bitcoin Office tracker showed the country's holdings stood at approximately 7,764 Bitcoin, valued at roughly $628 million at a price of $80,900 per coin
▪The International Monetary Fund stated that documentation provided by Salvadoran authorities verified that all Bitcoin added to El Salvador's national reserves since June 2025 came from private donations, with no public resources used
▪The International Monetary Fund stated that it expects no further Bitcoin accumulation by El Salvador beyond the documented private donations

Chivo wallet privatization

▪Majority ownership and operational control of El Salvador's state-sponsored Chivo wallet have been transferred to an unnamed private operator, while the government retains a minority stake and custodial responsibility for customer assets
▪The privatization of the Chivo wallet represents a shift from El Salvador's previous approach of active government promotion and sign-up bonuses funded by the public purse

Economic growth projections

▪The International Monetary Fund projects real GDP growth of 4.5% for El Salvador in 2026, driven by investment, remittances, tourism, and consumer spending
▪El Salvador's Central Reserve Bank raised its own 2026 economic growth forecast range to between 4.5% and 5%, up from an earlier projection of 3% to 3.5%

IMF program conditions

▪Under the terms of the International Monetary Fund program, El Salvador agreed to make merchant acceptance of Bitcoin voluntary, collect taxes in U.S. dollars, and limit public-sector Bitcoin purchases
▪El Salvador and International Monetary Fund staff reached understandings on modernizing digital asset regulation and strengthening governance and risk management for public-sector crypto holdings

Debatable claims

▪The IMF's austerity conditions for El Salvador's loan program are too economically damaging
▪International lenders should not condition financial aid on a country's cryptocurrency policies
▪Sovereign nations should not hold Bitcoin in their national reserves