financetom
Cryptocurrency
financetom
/
Cryptocurrency
/
El Salvador Secures IMF Deal, Retains Bitcoin Holdings Amid Fiscal Changes
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
El Salvador Secures IMF Deal, Retains Bitcoin Holdings Amid Fiscal Changes
May 28, 2025 9:05 PM

El Salvador and the International Monetary Fund (IMF) have reached a staff-level agreement on the first review of the country’s 40-month Extended Fund Facility (EFF) arrangement.

The agreement is pending approval by the IMF’s Executive Board and is dependent on the implementation of agreed-upon conditions.

Progress and Fiscal Reforms

According to a joint statement from IMF officials Rodrigo Cubeddu and Luis Torres, El Salvador’s early performance under the program has been strong. The country has met key fiscal and reserve targets while steadily advancing governance and financial resilience reforms.

“The authorities have made significant progress in implementing their economic reform plan under the IMF-supported program. Most program targets set for the first review were comfortably met, and implementation of the structural benchmarks is progressing well,” said the officials.

They added that the nation’s economy continued to expand, supported by investor confidence and resilient remittance inflows. The statement also emphasized the importance of maintaining momentum on fiscal consolidation and structural changes to address macroeconomic imbalances and support sustainable growth.

Under the deal, El Salvador will continue its fiscal tightening measures. These include cuts to the public wage bill, restrained current spending, and upcoming civil service and pension system updates. The efforts will be supported by the upcoming Fiscal Sustainability Law, with the government also planning to increase deposits at the countrys central bank to boost external reserves.

IMF Doubles Down on Bitcoin Stance

Despite the progress, the IMF reiterated its concerns about El Salvador’s Bitcoin strategy. It stated that efforts were being made to ensure the government does not add to its BTC holdings.

On Bitcoin, efforts will continue to ensure that the total amount of Bitcoin held across all government-owned wallets remains unchanged, the statement read.

Additionally, steps are underway to phase out public sector involvement in the Chivo wallet by the end of July.

In December 2024, the two parties struck a $1.4 billion deal that included conditions to limit the nation’s crypto-related activities. The deal required BTCs acceptance in El Salvadors private sector to remain voluntary and restricted public sector involvement in related transactions.

These conditions were later integrated into national policy through amendments to the Bitcoin Law approved by El Salvador’s Congress. The IMF Executive Board then approved the financing deal in February 2025, allowing an initial disbursement of $120 million, subject to approval.

Despite the required limitations on crypto engagement, El Salvador’s Bitcoin Office has continued its strategy of buying one BTC per day. As of May 28, 2025, the country holds approximately 6,190 BTC, valued at around $675 million.

President Nayib Bukele has also publicly stated that cryptocurrency remains a central part of his vision for the nation.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
El Salvador Secures IMF Deal, Retains Bitcoin Holdings Amid Fiscal Changes
El Salvador Secures IMF Deal, Retains Bitcoin Holdings Amid Fiscal Changes
May 28, 2025
El Salvador and the International Monetary Fund (IMF) have reached a staff-level agreement on the first review of the country’s 40-month Extended Fund Facility (EFF) arrangement. The agreement is pending approval by the IMF’s Executive Board and is dependent on the implementation of agreed-upon conditions. Progress and Fiscal Reforms According to a joint statement from IMF officials Rodrigo Cubeddu and...
AI Crypto Sector Grows 4x in 2 Years, Nears $20B in Market Cap
AI Crypto Sector Grows 4x in 2 Years, Nears $20B in Market Cap
May 28, 2025
Over the past year, AI-driven projects have taken center stage in the crypto space. Currently, this sector includes 20 tokens with a collective market cap nearing $20 billion, which makes it the smallest crypto segment at just 0.67% of the overall market. To put this into perspective, the Financials sector holds a market value of about $519 billion. Grayscale attributes...
Cynthia Lummis Says US Military Leaders Support Bitcoin Reserve
Cynthia Lummis Says US Military Leaders Support Bitcoin Reserve
May 28, 2025
U.S. Senator Cynthia Lummis has stated that American military generals are “big supporters” of a strategic Bitcoin reserve. The Wyoming lawmaker made the remarks earlier this week while addressing attendees at the Bitcoin 2025 conference in Las Vegas. Economic Power and Security According to Lummis, she has spoken to generals who understand that economic power is just as important as...
BlackRock Bitcoin ETF Sees 33
BlackRock Bitcoin ETF Sees 33
May 28, 2025
“This is getting ridiculous,” exclaimed ETF Store President Nate Geraci on X on May 29, following the latest bumper inflow day for BlackRock’s iShares Bitcoin Trust (IBIT). The BlackRock fund saw another large inflow day on May 28 with $481 million entering the ETF. This has culminated in 33 consecutive trading days without an outflow, the last of which was on...
Copyright 2023-2026 - www.financetom.com All Rights Reserved