According to ME News, on September 4 (UTC+8), the International Monetary Fund (IMF) announced that it has reached a staff-level agreement with El Salvador on the second and third combined reviews of its extended fund facility (EFF), spanning 40 months. Following approval by the Executive Board and completion of prerequisite actions, El Salvador will be eligible for an additional approximately $140 million (101.96 million SDRs). Regarding digital assets, the statement noted that public participation in El Salvador’s Chivo digital wallet has significantly declined, with majority ownership and operational control transferred to private operators, while the government retains only a minority stake. Bitcoin acquisitions since the first review have been verified through documentation as originating from private donations, without utilizing public resources. Both parties signed a memorandum of understanding on modernizing the legal and regulatory framework for digital assets and strengthening governance and risk management of crypto-assets within the public sector. It is expected that, going forward, Bitcoin holdings will not increase beyond previously recorded donations, and efforts are underway to enhance transparency of wallet balances. (Source: Foresight News)
IMF and El Salvador Reach Staff-Level Agreement on EFF Reviews, Address Bitcoin Holdings and Chivo Wallet
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Summary
On September 4, the IMF announced it had reached a staff-level agreement with El Salvador on the second and third combined reviews of its 40-month EFF arrangement. The country is expected to receive approximately $140 million (101.96 million SDRs) following Executive Board approval. Public usage of the Chivo digital wallet has declined, with most control now held privately. Verified Bitcoin holdings originated from private donations, not public funds. A new MOU aims to modernize digital asset regulations and enhance crypto governance. Both parties confirm no further Bitcoin purchases and are increasing wallet transparency. The agreement supports liquidity and stability in crypto markets. Risk-on assets remain under close policy review.
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