The International Monetary Fund (IMF) has agreed to disburse $120 million to El Salvador following a successful first review of the country’s $1.4 billion loan arrangement.
The payout, however, is contingent upon the Central American nation fulfilling strict conditions—chief among them, scaling back its involvement in Bitcoin-related activities.
According to the IMF’s latest statement, El Salvador must fully withdraw from the state-operated Chivo wallet by the end of July. The fund also emphasized that the government must refrain from increasing its Bitcoin holdings.
“Efforts will continue to ensure that the total amount of Bitcoin held across all government-owned wallets remains unchanged,”
the IMF noted.
The disbursement is part of a broader 40-month financing deal signed in December 2024, in which El Salvador committed to reining in its Bitcoin ambitions. The IMF has repeatedly advised against the country’s continued cryptocurrency exposure, with its most recent warning issued on March 3, urging an end to further Bitcoin accumulation and related activities.
Despite the IMF’s ongoing concerns, President Nayib Bukele has made it clear that his administration will not abandon its Bitcoin strategy. El Salvador continues to acquire one Bitcoin per day through its Bitcoin Office—a separate entity that tracks and manages the country’s crypto holdings. Over the past month alone, the office has added 30 BTC, bringing the national reserve to approximately 6,190 BTC.
Last week, Bukele took to X to highlight that the country’s Bitcoin treasury is now sitting on an unrealized profit of $386 million, representing a 132% return on investment.
Rodrigo Valdes, the IMF’s director for the Western Hemisphere, acknowledged in April that El Salvador is technically meeting its obligations under the current loan agreement. Meanwhile, blockchain adviser Anndy Lian speculated that the government could maintain compliance by routing future Bitcoin acquisitions through non-state actors.
As the IMF executive board prepares to review the planned disbursement, El Salvador finds itself walking a tightrope between appeasing global financial institutions and advancing its national Bitcoin agenda.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
