According to the International Monetary Fund (IMF), El Salvador is not buying new bitcoins but merely reallocating funds already held by the government.
Despite repeated announcements from President Bukele, the Central American country is not actually acquiring additional bitcoins, according to the IMF. A footnote in the IMF’s review report of the Extended Fund Facility (EFF) states: “Increases in Bitcoin holdings in the Strategic Bitcoin Reserve Fund reflect the consolidation of Bitcoin across various government-owned wallets.”
This revelation appears to contradict multiple statements made by El Salvador’s National Bitcoin Office, which has consistently claimed that it is purchasing bitcoin to grow the country’s reserves.
The $1.4 billion loan conditions
The Extended Fund Facility granted El Salvador a $1.4 billion loan approved last February. Among the loan conditions, the IMF had explicitly asked the Bukele administration to halt bitcoin acquisition operations.
The IMF report states:
“The overall stock of Bitcoin held by the public sector has remained unchanged since program approval.”
The document also confirms that the goal of ending public sector involvement in the Chivo wallet by the end of July remains unchanged. This decision marks a further step toward reducing the government’s exposure to Bitcoin, in line with IMF requirements.
Despite these issues, the report maintains an overall positive tone regarding El Salvador’s economy. ”Program performance has been solid, with the economy continuing to expand as macroeconomic imbalances are being addressed,” the document reads.
As a result of the favorable evaluation, the IMF has authorized the immediate disbursement of 86.16 million SDRs (Special Drawing Rights) — equivalent to about $118 million — as part of the loan program. A total of $231 million has been disbursed so far.
