IMF Rewards El Salvador’s Growth but Keeps Bitcoin Pressure On

IMF Rewards El Salvador’s Growth but Keeps Bitcoin Pressure On
The International Monetary Fund has approved the release of roughly $138 million to El Salvador after completing two reviews of its economic program, offering a notably positive assessment of growth while maintaining pressure over the country’s Bitcoin commitments.

The disbursement is part of a 40-month, $1.4 billion financing arrangement approved in 2025. The IMF said economic activity had “exceeded expectations,” supported by sustained improvements in security and investor confidence. It has projected 4.5% growth for El Salvador in 2026, citing investment, private consumption, remittances, tourism and capital inflows alongside the improved security environment.

The Fund’s assessment also credits the Bukele administration with progress on fiscal adjustment. According to the review, public reserves and liquidity were above program targets, and IMF First Deputy Managing Director Dan Katz described the program as producing “tangible benefits,” including stronger-than-expected GDP growth, improved social indicators and reinforced fiscal and external buffers.

But the favorable macroeconomic reading does not remove the central disagreement over Bitcoin. Under the agreement, El Salvador pledged not to use public money to build its Bitcoin reserves, to scale back the state’s role in cryptocurrency operations and to make private-sector acceptance of Bitcoin voluntary. The government has also transferred majority control of the state-created Chivo digital wallet to a private company.

The IMF said El Salvador missed a target barring voluntary increases in Bitcoin held by the public sector. Salvadoran authorities said the additional holdings came from private donations rather than public funds and submitted documentation on their origin. The Fund accepted corrective measures and released the funds, but said it did not expect further reserve increases beyond the documented donations and would continue seeking greater transparency over public digital-asset holdings.

The result is a qualified endorsement: the IMF sees measurable gains in the broader economy, but continues to treat Bitcoin policy as an unresolved risk requiring limits and disclosure.

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