IMF Approves $138 Million for El Salvador After Bitcoin Waiver

The International Monetary Fund has approved a $138 million financing arrangement for El Salvador while issuing a waiver tied to the country's Bitcoin policy. The IMF's approval comes with explicit expectations about how the Salvadoran government should manage any Bitcoin holdings going forward. According to the fund, El Salvador should not increase its official Bitcoin holdings beyond amounts that have been formally documented as donations. The IMF also instructed that the government's outstanding exposure linked to the Chivo digital wallet be fully unwound, indicating concern about the fiscal and financial implications of the state-run crypto payment program. The move reflects the IMF's broader caution toward sovereign engagement with volatile digital assets and state-backed crypto initiatives. By making continued support conditional on limiting Bitcoin accumulation and removing residual Chivo exposure, the fund is signaling that such exposures are considered material when assessing the country's financial position. The approval and its attached expectations were described in the source excerpt provided, which noted both the $138 million figure and the IMF's stance on future Bitcoin activity and Chivo-related holdings.