IMF Approves $138 Million for El Salvador as Bitcoin Reforms Continue

Habari Entertainment | October 1, 2026

WASHINGTON, D.C. — The International Monetary Fund has approved an immediate disbursement of approximately $138 million for El Salvador after completing the second and third reviews of the country’s economic program, citing stronger growth and improved financial buffers while calling for continued fiscal and Bitcoin-related reforms.

The funding falls under El Salvador’s 40-month Extended Fund Facility arrangement, approved in February 2025 with total access of approximately $1.4 billion.

According to the IMF’s October 1 statement, economic activity has exceeded expectations, supported by sustained improvements in security and rising investor confidence. However, maintaining those gains will require the timely implementation of agreed reforms.

Growth improves, but debt remains elevated

The IMF projects El Salvador’s economy will grow 4.5% in 2026, following an estimated growth of 3.9% in 2025. Growth is expected to moderate to 4.0% in 2027.

Average inflation is projected at 2.7% this year and 2.1% next year. Gross international reserves are forecast to rise from an estimated $4.81 billion in 2025 to approximately $5.35 billion in 2026 and $6.17 billion in 2027.

Despite those improvements, public debt remains substantial. The IMF projects gross debt at 85.0% of GDP in 2026 and 89.2% in 2027. The 2027 public-sector figures include recognition of $2.3 billion in accrued but unpaid interest owed to private pension funds.

That accounting detail matters: the projected increase in debt comes alongside an improving primary fiscal balance, which measures government revenue against spending before interest payments.

Bitcoin commitments remain under scrutiny

El Salvador did not meet certain program performance criteria, including a requirement concerning Bitcoin accumulation. The IMF granted waivers based on corrective measures and renewed commitments from the authorities.

The Fund reported that the majority ownership and control of Chivo, the government’s digital wallet, had been transferred to a private operator. It welcomed the transfer while urging the government to fully unwind its remaining exposure.

Under the stated program commitments, no further Bitcoin accumulation is envisaged beyond documented donations.

The IMF also called for greater transparency about public-sector crypto holdings and stronger oversight of crypto-asset providers, including amendments to the Digital Asset Issuance Law.

Pension reforms and social spending take priority

Following earlier delays, pension and civil service reforms are expected to move forward to support fiscal consolidation.

The IMF urged stronger revenue administration, continued spending restraint, and improvements in treasury and debt management. It also emphasized protecting priority social spending to help reduce poverty. The accompanying indicators estimate that 24.3% of the population lived below the poverty line in 2025.

Financial reforms will focus on stronger oversight of banks, cooperatives, and public financial institutions, alongside adequate liquidity buffers.

The Fund also identified anti-corruption measures, improved public reporting, corporate ownership transparency, and stronger anti-money-laundering frameworks as priorities.

Continued progress depends on implementation

Dan Katz, identified in the release as the IMF’s first deputy managing director and chair of the Board discussion, said the program had produced benefits through stronger growth, improved social outcomes, and larger financial buffers.

But the IMF’s approval also carries a clear expectation: delayed reforms and corrective measures must be implemented to preserve economic stability and program credibility.

Source: The IMF release and economic indicators supplied with this request.

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Tags: El Salvador, IMF, Bitcoin, Chivo, Economic Growth, Public Debt, Latin America