IMF Agrees to Unlock $140 Million for El Salvador After Bitcoin Reforms

The International Monetary Fund (IMF) announced that it had reached an agreement with El Salvador that could unlock a $140 million loan disbursement, after securing commitments related to Bitcoin. In September 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender alongside the U.S. dollar.

Concerned about the risks that the cryptocurrency’s extreme volatility posed to public finances, the IMF secured changes in January 2025 that stripped Bitcoin of its status as mandatory legal tender. The change was a condition for the Salvadoran government to receive $1.4 billion in loans over 40 months under an agreement reached in December 2024.

As part of that program, the IMF reached a preliminary agreement to release a $140 million tranche following the “second and third reviews,” the institution said Thursday. “Ownership and operational control of the government’s electronic wallet have been transferred to a private operator, and no public resources have been used to accumulate Bitcoin,” the IMF noted.

The organization also said the country’s economy is showing “strong performance,” with growth exceeding forecasts last year and expected to reach 4.5% in 2026. Investment, consumer spending, remittances, tourism and capital inflows are all rising, according to the IMF, which attributed the improvement to better security and renewed investor confidence.