The billion-dollar loan deal between the IMF and El Salvador that was made last year, in the same the International Monetary Fund has agreed to give $120 million as a bigger loan deal worth $1.4 billion.
However, the IMF said that El Salvador has to follow the conditions discussed during the deal with reducing the government’s involvement in Bitcoin, and also has to cease its involvement in Chivo wallets by the end of July this year.
In its press release dated May 27, 2025 IMF quotes that, “ On Bitcoin, efforts will continue to ensure that the total amount of Bitcoin held across all government-owned wallets remains unchanged.”
What is the 40-month loan between El Salvador and the IMF?
In December last year, El Salvador and the International Monetary Fund reached a staff-level agreement extended fund facility arrangement worth approximately $1.4 billion to back the economic reform agenda in the country.
The $1.4 billion loan deal got the approval of the IMF executive board in February this year, allowing an immediate disbursement of about $113 million, and aims to catalyse an additional $3.5 billion from multilateral institutions like the World Bank and the Inter-American Development Bank.
With this deal, the targeted GDP growth of El Salvador is 3.5%, yet in 2022, the GDP of the nation grew by roughly 2.50%.
A quick brief of El Salvador’s total Bitcoin holdings
As per the data from Bitcoin(dot)gob(dot)sv, the total Bitcoin holdings of El Salvador are 6,190 BTC, which is valued at $673,999,566 when writing.
The portfolio increased by $69.8 million in 2025, and National Bitcoin Office and President Nayib Bukele’s updates provide these numbers, which include 473.5 BTC mined with geothermal energy and holdings amassed through daily purchases since November 2022.
Bitcoin price updates
Until publishing, Bitcoin was exchanging hands at $109.087 with a surge of 2.48% in a week, and in the past 30 days it added 15.02%.
In the past 24 hours, its trading volume has reached $52.03 billion, and its market capitalization is revolving near the mark of $2.16 trillion.
Most recently, Bitcoin has recorded its fresh all-time high of $111,970.17 on May 22, 2025, and its lowest traded price was $0.04865 recorded in 2015. When writing, Bitcoin is dominating 63.1% of the wider crypto market, with Ethereum having control over just 9.3%.
Following the most recent spikes in BTC prices, experts now speculate that it might soon reach $115k and followed by $125k. However, some others believe the ballooning is a short-term bullish signal and might fade in the coming sessions.
