The IMF Executive Board concluded the second and third reviews of El Salvador’s $1.4 billion Extended Fund Facility (EFF) program on October 1, 2026. The decision grants the country immediate access to a disbursement of SDR 101.96 million. This equates to roughly $138 million, though a separate Bloomberg estimate valued it at $139 million.
The funds were released despite El Salvador missing several agreed-upon performance criteria, including requirements regarding Bitcoin accumulation. The IMF granted waivers after local authorities implemented a series of corrective actions.
Anonymous Donation Loophole
The waiver was approved after the government submitted documentation stating that Bitcoin inflows into the state treasury came purely from private donors. The IMF accepted the argument that the additional crypto was not purchased using public funds. Despite avoiding penalties, the identities of the donors and the breakdown of individual contribution amounts remain confidential.
The IMF stated that it no longer expects El Salvador to accumulate Bitcoin outside of documented donation channels. The fund also urged the government to sever remaining public-sector involvement in the operations of the Chivo Wallet. Currently, the state retains a minority stake and bears custodial responsibility for the app - an involvement the IMF has demanded be phased out entirely.
This pressure has gradually reshaped domestic rules. The government previously overhauled its Bitcoin Law in 2025, repealing the mandate that required private businesses to accept crypto payments. The revised regulations also mandate that citizen taxes must be paid in US dollars.
Improving Macro Numbers
Beyond crypto matters, El Salvador’s macroeconomic indicators show positive momentum. The IMF projects the country’s real Gross Domestic Product (GDP) to grow 4.5% throughout 2026, outpacing the 2025 growth estimate of 3.9%. Economic expansion for 2027 is projected at 4%.
The country’s gross international reserves are projected to expand to $5.35 billion this year and reach $6.17 billion in 2027. On the fiscal front, the primary budget surplus is estimated at 2.9% of GDP this year before climbing to 3.7% next year.
While the state’s financial standing has improved, digital asset oversight remains an area of concern. The IMF called on El Salvador to strengthen regulatory frameworks for crypto firms, publicly disclose state crypto holdings, and tighten supervision across the broader financial sector.
A New Threshold of Tolerance
The IMF’s decision to release hundreds of millions of dollars despite initial rule violations highlights a shift in the institution’s stance. It now tolerates Bitcoin holdings sourced from donations, provided the debtor nation gradually steps back from ambitions to mandate crypto as legal tender.
Reported by crypto.news.
Also read: What Is Bitcoin Halving?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
