El Salvador Secures $1.4B IMF Loan Amid Bitcoin Policy Shift
Despite initial tensions over El Salvador’s adoption of Bitcoin as legal tender, after four years of negotiations, El Salvador finally reached a $1.4 billion loan agreement with the International Monetary Fund (IMF). The 40-month plan aims to stabilize El Salvador’s economy, promising to strengthen its fundamental balance and reduce its debt-to-GDP ratio. The International Monetary Fund acknowledged progress in mitigating Bitcoin-related risks, signaling a shift in relations. The deal marks an important step for the Central American country to address its financial challenges while developing a unique cryptocurrency policy.
