The International Monetary Fund (IMF) has reached a preliminary agreement with El Salvador for an extended financing program worth $1.4 billion — but there’s a catch. The country must halt all public Bitcoin purchases and shut down access to its state-run crypto wallet, Chivo.
💰 Deal Approved – But Only Without More Bitcoin
After months of negotiations, El Salvador secured an initial $120 million disbursement as part of a broader $1.4 billion package, pending approval from the IMF’s Executive Board. The key conditions include:
🔹 No more Bitcoin purchases using public funds
🔹 Chivo wallet must be closed to the public by July 1, 2025
🔹 Total government-held BTC must remain unchanged
In its statement, the IMF said:
“Efforts will continue to ensure that the total amount of Bitcoin held in all government wallets remains unchanged.”
📈 Bukele Remains Unshaken: "No, We’re Not Stopping"
Despite IMF warnings, President Nayib Bukele remains defiant. He confirmed that El Salvador will continue acquiring Bitcoin as part of its national treasury strategy. In the past month alone, the country added 30 BTC, bringing total reserves to 6,190 BTC, worth approximately $675 million. Unrealized profits from the holdings now exceed $350 million, fueled by Bitcoin’s sharp rise in 2025.
Bukele declared:
“No, it’s not stopping. If we didn’t stop when the world ostracized us and most ‘bitcoiners’ abandoned us, we won’t stop now — and we won’t stop in the future.”
⚖️ IMF Demands Discipline, El Salvador Needs Cash
To receive the next $120 million tranche, El Salvador must also implement a series of structural reforms:
🔹 Stronger fiscal discipline
🔹 Improved bank liquidity
🔹 Overhauls in public administration and pension systems
The IMF confirmed that total financial support from all lenders could reach up to $3.5 billion, if El Salvador meets the agreed terms.
🧮 IMF Press Release Details
“The EFF arrangement was approved on February 26, 2025, with access to 1.033 billion SDR (approx. $1.4 billion). The first disbursement totaled 86.16 million SDR. Other official lenders have pledged additional support amounting to roughly $3.5 billion.”
📌 Summary:
🔹 IMF demands end to Bitcoin purchases via public funds
🔹 Chivo wallet must be closed to the public by July 1
🔹 Bukele insists the Bitcoin strategy will continue
🔹 El Salvador needs up to $3.5B in financing from IMF and other lenders
🔹 Further payments are tied to deep fiscal and institutional reforms
#ElSalvador , #BTC , #CryptoNewss , #CryptoFinance , #globaleconomy
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