El Salvador's Bitcoin Buying Plans Hit a Wall

IMF Clears El Salvador on Public Bitcoin Spending

The International Monetary Fund has confirmed that El Salvador used no government money to accumulate $BTC after the first review of its lending program concluded in June 2025. El Salvador used no public resources to accumulate Bitcoin after the first review of its IMF financing program in June 2025, according to the lender.

The clarification matters because El Salvador's reserve continued to grow even after the government committed under its IMF deal not to expand public-sector Bitcoin holdings. The explanation addresses how El Salvador's holdings grew after the first review, after the country said in November 2025 that it had acquired 1,090 BTC worth $100 million, renewing questions about compliance with its $1.4 billion IMF program.

In a Thursday statement, the IMF said documents supplied by Salvadoran authorities verified that the accumulation came from private donations. The announcement does not identify the donors or specify the amount of Bitcoin received privately. The IMF added that it does not expect any further $BTC accumulation beyond those documented donations.

The IMF also said majority ownership and operational control of the Chivo wallet had been transferred to a private operator, while the government retained a minority stake and custodial responsibilities.

$140 Million on the Line

The disclosure came as part of a broader staff-level agreement covering the combined second and third reviews of El Salvador's 40-month Extended Fund Facility. IMF staff and the Salvadoran authorities have reached a staff-level agreement on the combined second and third reviews of the 40-month arrangement under the Extended Fund Facility. Subject to approval by the IMF Executive Board, El Salvador would receive around $140 million.

The possible $140 million payout is not a new loan. It is the next payment under the existing program, released after El Salvador met the IMF's economic targets. As of September 4, 2026, El Salvador holds 7,764 BTC, currently worth around $628.3 million. The country's total cost for these Bitcoin holdings is about $388.9 million, giving it a strong unrealized profit.

On the broader economic picture, economic activity has outperformed expectations, while fiscal and external imbalances are being addressed in line with program commitments. The IMF is projecting real GDP growth of 4.5% for El Salvador in 2026, building on a 2025 performance of 3.9% that already exceeded earlier forecasts.

Beyond the $140 million in direct funds, the broader EFF program is designed to catalyze more than $3.5 billion in additional multilateral support.

Sources:
IMF: Staff-Level Agreement on Combined Second and Third Reviews under El Salvador's EFF
CoinTelegraph: El Salvador Used No Public Funds for Bitcoin, IMF Says
Crypto.news: El Salvador Used No Public Funds for Bitcoin, IMF Confirms