El Salvador secured a $120 million payout from the IMF as part of its $1.4 billion loan agreement, on condition of reducing Bitcoin exposure.
By Bhushan Akolkar
Editor Julia Sakovich
Updated
2 mins read
El Salvador, the first country to make Bitcoin BTC $106 205 24h volatility: 1.0% Market cap: $2.11 T Vol. 24h: $37.86 B a legal tender, has successfully secured a $120 million payment from the International Monetary Fund (IMF), following the latest review of its $1.4 billion loan agreement in 2024.
Of course, the recent loan payment from the IMF comes with conditions wherein El Salvador will have to reduce its Bitcoin exposure. Furthermore, the global monetary body has demanded that the country needs to forego its association with the Chivo wallet by the end of July. In the official press release, IMF noted:
“On Bitcoin, efforts will continue to ensure that the total amount of Bitcoin held across all government-owned wallets remains unchanged”.
The $120 million payout by the IMF is part of the larger agreement of a $1.4 billion loan to El Salvador, on the condition that the Latin American country will cut down on its Bitcoin acquisition plan.
Earlier on March 3, the IMF reiterated its call for El Salvador to halt Bitcoin accumulation and avoid further Bitcoin-focused activities. However, President Nayib Bukele has affirmed his government’s intent to continue purchasing one Bitcoin daily, maintaining its Bitcoin treasury strategy despite the IMF’s recommendations.
Following the IMF’s May 27 announcement, El Salvador’s Bitcoin Office shared on X that the nation has resumed its Bitcoin purchases.
According to the official Bitcoin tracker, the Bitcoin Office has added 30 BTC over the past month, bringing the country’s total Bitcoin reserves to 6,190.18 BTC.
On May 22, President Nayib Bukele revealed on X that El Salvador’s Bitcoin treasury is currently sitting at an unrealized profit of $386 million, reflecting a 132% gain on its total Bitcoin investment.
They said, “Don’t take screenshots, take profits” 🤷🏻♂️ https://t.co/dEKP5Y4qzc pic.twitter.com/2lx8sPWBSJ
— Nayib Bukele (@nayibbukele) May 22, 2025
Besides, El Salvador delegates also met the SEC last month to discuss different crypto initiatives.
In April, Rodrigo Valdes, director of the IMF’s Western Hemisphere Department, confirmed that El Salvador is adhering to the IMF’s performance criteria. Blockchain adviser Anndy Lian noted that the country might sustain technical compliance by acquiring Bitcoin through non-government entities
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
