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IMF Praises El Salvador Growth as Bitcoin Tensions Ease

#ElSalvador's government now holds 7,509 $BTC worth about $660 million after adding more than 1,000 Bitcoin in November. The International Monetary Fund praised the country's stronger-than-expected economic growth in a Monday statement, with real GDP growth projected to reach around 4%.

The #IMF statement did not include previous suggestions that El Salvador would halt its strategy of accumulating #Bitcoin. President Nayib Bukele has continued the crypto acquisition program since negotiating an IMF loan package several months ago.

El Salvador diverted from its normal #strategy of adding one Bitcoin per day in November, instead purchasing 1,090 $BTC worth about $100 million amid that month's steep sell-off. The 2026 economic outlook is very good, according to the IMF.

The IMF noted that negotiations for the sale of the government's #crypto wallet Chivo are well advanced. Discussions regarding the Bitcoin project continue, centered on enhancing transparency, safeguarding public resources, and mitigating risks.

In March, El Salvador reached an agreement with the IMF to receive a $3.5 billion loan package. Close engagement with Salvadoran authorities is expected to continue with the objective of reaching a staff level agreement on policies and reforms needed to complete the second review of the EFF program.

El Salvador's economy is expanding at a faster-than-anticipated pace on the back of improved confidence, record remittances, and buoyant investment. The IMF confirmed in a separate statement that El Salvador's government was proceeding with negotiations for the sale of the Chivo Bitcoin wallet.

A May deal between the IMF and El Salvador included a $120 million payment as part of a 2024 loan agreement for $1.4 billion. As part of that deal, the government would stop acquiring Bitcoin, though it remains unclear whether El Salvador is abiding by those terms.