IMF Reaches $120 Million Deal with El Salvador Despite Continued Bitcoin Purchases

TLDR

Table of Contents

The IMF reached a $120 million payment agreement with El Salvador but says “efforts will continue” to ensure the country stops buying more Bitcoin
El Salvador agreed to a $3.5 billion IMF loan package that included conditions to halt government Bitcoin accumulation
Despite the agreement, El Salvador has continued purchasing Bitcoin, increasing holdings from 6,101.15 BTC to 6,190.18 BTC worth about $678 million
President Nayib Bukele stated Bitcoin purchases will not stop and the country bought more Bitcoin shortly after the IMF announcement
The IMF said El Salvador must cease involvement with the Chivo wallet by the end of July and confine its Bitcoin activities

The International Monetary Fund announced a $120 million payment agreement with El Salvador on May 27, following a review of the country’s $1.4 billion loan deal. The agreement comes as El Salvador continues to purchase Bitcoin despite IMF conditions aimed at halting such acquisitions.

The payment is part of a larger 40-month loan package worth $1.4 billion that El Salvador agreed to in December. Under the original terms, the country committed to limiting government involvement in Bitcoin activities and ceasing further accumulation of the cryptocurrency.

The IMF stated that “efforts will continue to ensure that the total amount of Bitcoin held across all government-owned wallets remains unchanged.” This language suggests ongoing negotiations rather than firm enforcement of the original agreement terms.

El Salvador must also end its involvement with the Chivo wallet by the end of July. The Chivo wallet was the government’s official Bitcoin wallet system launched when Bitcoin became legal tender in the country.

Bitcoin Holdings Continue to Grow

Despite agreeing to halt Bitcoin purchases, El Salvador’s Bitcoin reserves have increased from 6,101.15 BTC in March to 6,190.18 BTC as of the latest count. The current holdings are worth approximately $678 million at current Bitcoin prices.

The Bitcoin Office, El Salvador’s official Bitcoin purchasing entity, has acquired 30 BTC in the past 30 days alone. Shortly after the IMF’s May 27 announcement, the Bitcoin Office posted on social media that the country had purchased more Bitcoin.

EL SALVADOR JUST BOUGHT MORE BITCOIN pic.twitter.com/HlEJMkFIOW
— The Bitcoin Office (@bitcoinofficesv) May 28, 2025

President Nayib Bukele has been clear about his intentions to continue Bitcoin purchases. On March 4, he posted on X that Bitcoin buying would not stop, stating it did not halt “when the world ostracized us and most ‘bitcoiners’ abandoned us.”

Bukele revealed last week that El Salvador’s Bitcoin treasury shows an unrealized profit of $386 million. This represents a 132% gain on the country’s total Bitcoin investment since it began accumulating the cryptocurrency.

IMF Response and Compliance

The IMF did not acknowledge any contradiction between El Salvador’s continued Bitcoin purchases and the loan agreement terms. The organization stated that program performance had been strong and that key fiscal and reserve targets had been met.

“IMF staff thank the Salvadoran authorities for the excellent collaboration and constructive discussions,” the IMF report said. This diplomatic language contrasts with the ongoing Bitcoin accumulation that appears to violate agreement terms.

Rodrigo Valdes, director of the Western Hemisphere Department at the IMF, said in April that El Salvador is complying with the IMF’s performance criteria. The $120 million payment is subject to IMF executive board approval.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: