The International Monetary Fund has reached a $1.4 billion loan agreement with El Salvador

2024-12-19 08:28:45

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ChainCatcher news, El Salvador has reached an agreement with the International Monetary Fund (IMF) after four years of tense negotiations due to the country's acceptance of Bitcoin as legal tender.

According to a statement from the IMF, the two parties have agreed on a $1.4 billion loan program that will be disbursed over 40 months. In exchange, El Salvador has agreed to take measures to improve its primary balance and help reduce its debt-to-GDP ratio. The IMF praised the government's efforts to improve fiscal conditions, develop the economy, reduce inflation, and manage short-term debt.

As part of the agreement, the country will make it voluntary for merchants to accept Bitcoin payments while gradually reducing the government's involvement in Bitcoin-related projects, including a phased withdrawal from the management of the state-supported wallet app Chivo.

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