Overview
- The IMF reports negotiations are well advanced on selling or winding down the state-run Chivo e-wallet, with discussions centered on transparency, protection of public funds, and risk mitigation.
- The talks form part of the second review of El Salvador’s 40‑month Extended Fund Facility, and the IMF says close engagement continues toward a staff-level agreement.
- El Salvador continues daily Bitcoin purchases, with the National Bitcoin Office reporting roughly 7,500 BTC in holdings following a large addition in November.
- The IMF highlights stronger-than-expected growth near 4% this year alongside rising reserves, reduced domestic borrowing, and progress on banking, Basel III, and AML/CFT reforms.
- Policy tension persists as program conditions require scaling back public-sector crypto involvement and divesting Chivo, even as the government advances pro-crypto measures to attract private players.