IMF Asks El Salvador to Purchase No More Bitcoin In Return for Upto $3.5B EFF

In the latest development, IMF and El Salvador have reached a preliminary agreement with $1.4 billion extended loan program, but with conditions. IMF maintains its no more Bitcoin stance and made it clear condition to access extended fund facility of upto $3.5B. It has also asked El Salvodar govt. to discontinue chevo wallet access to public by July 1, 2025. Will Nayib Bukele give up his Bitcoin obsession?

El Salvador Gets IMF Nod for $120M Payment, More under consideration

In an official press release, the IMF agreed to pay El Salvador $120 million as part of a $1.4 billion extended loan program subject to approval. Reportedly, the financial agency reached a staff-level agreement with the Central American nation, following months of negotiations. Luis Cubeddu, Deputy Director of the Western Hemisphere Department, and Iván Luis Torres, Mission Chief for El Salvador, issued a statement that read,

IMF staff have reached staff-level agreement with the Salvadoran authorities on the first review under the 40-month EFF arrangement. The agreement is subject to approval by the IMF’s Executive Board, and contingent on the implementation of the agreed prior actions.

Notably, this agreement comes with conditions, including limiting further government involvement in Bitcoin and ceasing involvement in the Chivo wallet by the end of July. Additionally, the country is required to ensure the total amount of Bitcoin held across all government-owned wallets remains unchanged. The IMF stated, “On Bitcoin, efforts will continue to ensure that the total amount of Bitcoin held across all government-owned wallets remains unchanged.”

IMF Maintains No Bitcoin Policy In Return for $3.5B

As reported by coingape, despite the financial agency’s restrictions on El Salvador’s BTC accumulation, the country has continued its purchase spree. Over the past month, the country has bought 30 BTC, with its reserve currently standing at 6,190.18 BTC, valued at around $675 million. The government’s BTC holdings have racked up unrealized gains exceeding $350 million, driven by the cryptocurrency’s surge this year. President Nayib Bukele confirmed that the country will keep buying BTCs as part of the Bitcoin treasury strategy. He noted,

“No, it’s not stopping. If it didn’t stop when the world ostracized us and most “bitcoiners” abandoned us, it won’t stop now, and it won’t stop in the future.”

The latest IMF deal marks a pragmatic shift. It allows the country limited crypto exposure while enforcing broader economic discipline. To receive the next $120 million funding tranche, El Salvador must implement fiscal reforms, boost bank liquidity, and enact civil service and pension changes, pending IMF executive board approval.

With $1.4 Billion from IMF and and additional $2.1B from other creditors at stake, this is a very difficult situation for El Salvador. The press release makes it clear that El Salvador needs to stop purchasing more Bitcoin through state funding  as well as stop public access to its chevo wallet by 1st July.

The press release, reads, quote,

“The EFF was approved by the IMF Executive Board on February 26, 2025, with total access of SDR 1033.92 million (about US$1.4 billion or 360 percent of quota), and initial disbursement of SDR 86.16 million. Other official creditors committed to provide additional financial support for a combined total of roughly US$3.5 billion.”