- IMF–El Salvador talks advance as Chivo wallet sale nears and Bitcoin policy remains under review.
- EFF loan talks continue despite on-chain data showing El Salvador still accumulating Bitcoin.
- IMF flags stronger growth outlook, citing 4% GDP growth and improving fiscal discipline.
The International Monetary Fund has confirmed progress in its ongoing negotiations with El Salvador, as discussions continue around the country’s Bitcoin-related policies and the potential sale of its government-backed Chivo digital wallet. The talks form part of broader efforts tied to El Salvador’s participation in a multiyear financing arrangement with the IMF.
According to an official IMF statement released earlier today, negotiations regarding the sale of the Chivo wallet are “well advanced,” while discussions on El Salvador’s Bitcoin project remain ongoing. The IMF stated that the talks are focused on enhancing transparency, protecting public resources, and mitigating financial risks associated with the country’s digital asset initiatives.
The negotiations are connected to El Salvador’s effort to secure funding under a 40-month Extended Fund Facility (EFF) program. Under the arrangement, the country is seeking a loan package valued at approximately $1.4 billion. The IMF has been working directly with the administration of President Nayib Bukele as part of the program’s implementation and review process.
Bitcoin Policy Adjustments Under EFF Framework
As part of commitments tied to the EFF program, El Salvador previously agreed to pause its official Bitcoin accumulation strategy earlier this year. The government also indicated its willingness to sell the Chivo wallet infrastructure, allowing private-sector participants to continue using Bitcoin as legal tender without direct state involvement.
Despite these commitments, blockchain data suggests the government has continued acquiring Bitcoin. Data from Arkham Intelligence indicates that El Salvador currently holds approximately 7,508 BTC. Last month, the government completed its largest single Bitcoin purchase to date, acquiring more than $100 million worth of the asset, as previously reported by CoinGape.
The IMF said it has maintained regular engagement with Salvadoran authorities as part of the second review of the EFF arrangement, with a focus on assessing the country’s broader economic program.
IMF Highlights Economic Performance
In its latest assessment, the IMF highlighted stronger-than-expected economic performance in El Salvador. The institution projected real GDP growth of approximately 4% for the current year, citing improved confidence, record remittance inflows, and increased investment activity.
The IMF also noted continued progress toward fiscal consolidation targets. According to the report, El Salvador remains on track to meet its end-2025 primary balance goals. The recently approved 2026 budget aligns with plans to further reduce the fiscal deficit, alongside expanded social spending.
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About the Author: Peter Mwangi
