IMF Releases New Requirements for El Salvador to Access Full $1.4 Billion Loan, Including Phased Reduction of Government-Backed Chivo Bitcoin Wallet

The International Monetary Fund (IMF) has released fresh requirements and guidelines for El Salvador to follow to access its full $1.4 billion loan support.

The International Monetary Fund (IMF) has imposed fresh demands on El Salvador to fully access its $1.4 billion loan support, setting a deadline of July 2025 for the Central American country to gradually reduce its role in the government-backed Chivo Bitcoin wallet, which was introduced after the country adopted Bitcoin as legal tender.

Key Takeaways:

El Salvador to End Public Funding for Chivo by July 2025

As part of the agreement, El Salvador is required to phase out support for the Chivo Bitcoin wallet by July 2025 and cease all voluntary Bitcoin purchases by the public sector.

This measure will restrict the government's involvement with the cryptocurrency, eliminating the use of public funds for buying or mining Bitcoin.

However, any Bitcoin holdings obtained through law enforcement actions, such as seizures and forfeitures, will not be affected by this restriction.

Now we know what "confined" means. No more buys for El Salvador. I would have preferred to hear it from the Bukele administration than from the IMF.

— Samson Mow (@Excellion)

The agreement also stipulates the need for transparency regarding the country's existing Bitcoin reserves.

The Salvadoran government must provide the IMF with a complete list of all Bitcoin wallets controlled by public institutions, detailing both hot and cold storage holdings.

Furthermore, it must liquidate Fidebitcoin, a trust fund that was initially created to support Bitcoin adoption in the country.

The government is required to release audited financial statements from both Fidebitcoin and the Chivo Bitcoin wallet to ensure greater accountability regarding public finances.

To monitor compliance with these measures, the IMF has scheduled regular reviews throughout 2025, with assessments set for March, June, July, and December.

El Salvador Loosens Bitcoin Mandate for Businesses

El Salvador became the first country to adopt Bitcoin as legal tender, requiring businesses to accept it as payment alongside the U.S. dollar.

It's official. The El Salvador law has been passed. is a legal tender in the country. Let's just take a moment to appreciate the moment 🙏🏻

— Coin Bureau (@coinbureau)

However, in a significant development, the nation's Congress has passed legislative amendments that remove this mandate, allowing businesses to choose whether or not to accept Bitcoin.

The reform, which was passed with overwhelming support—55 votes in favor and only two against—reflects a broader shift in policy that aligns with the IMF's conditions.

While businesses are no longer obligated to process Bitcoin transactions, they can still opt to accept cryptocurrency payments voluntarily. This marks a departure from the government's previous stance, which had actively promoted Bitcoin adoption as part of its economic strategy.

Bitcoin Purchase Spree Continues

Despite the IMF's emphasis on reducing government exposure to Bitcoin, President Nayib Bukele's administration has continued purchasing the cryptocurrency.

On February 25, 2025, El Salvador acquired an additional 7 BTC at an estimated price of $94,050 per coin.

Just days later, on March 2, El Salvador added another 5 BTC to its reserves, seizing an opportunity during a market dip to $83,000 per coin for the purchase.

This purchase, worth approximately $415,000, increased the nation's total Bitcoin holdings to 6,100 BTC.

Financial Transparency Concerns Amid IMF Loan Deal

On February 26, the IMF Executive Board approved a new Extended Fund Facility (EFF) arrangement for El Salvador, granting access to SDR 1,033.92 million (approximately $1.4 billion, or 360% of the quota).

The approval allowed for an immediate disbursement of SDR 86.16 million (around $113 million).

IMF Executive Board Approves New Extended Fund Facility Arrangement for El Salvador. — IMF (@IMFNews)

The arrangement is expected to unlock additional multilateral financial support, bringing the total financing package to over $3.5 billion throughout the program period.

Despite the IMF's insistence on greater financial transparency, concerns remain about how El Salvador will manage the funds.

The IMF's conditions include measures to improve oversight, such as requiring the government to publish audited financial statements and disclose the status of its Bitcoin reserves.

However, the loan terms do not specify how the funds will be allocated or monitored.

Critics argue that the lack of strict accountability measures could allow for mismanagement or opaque financial practices.

Under President Bukele's leadership, government transparency has steadily declined.

Bukele has no shame. He burned $300ish million in public money in a failed adoption and now tells investors who are losing their savings to chill and "enjoy life". For the crypto autocrat, the budget of one of the poorest countries in the Americas is his pocket money. — ricardovalp on @bluesky 🇸🇻🇺🇸