El Salvador Secures $1.4 Billion IMF Deal, Adjusts Bitcoin Law
El Salvador has reached a staff-level agreement with the International Monetary Fund (IMF) for a $1.4 billion Extended Fund Facility (EFF).
The 40-month agreement aims to address the country’s fiscal challenges while supporting economic reforms and long-term growth.
El Salvador’s IMF deal includes Bitcoin, tax and fiscal reforms
As part of the agreement, El Salvador will Correction Create Bitcoin Law Accept Bitcoin It is voluntary rather than mandatory for merchants. Taxes are paid in U.S. dollars only, and Government programs reduced its relationship with the state walletbilly goat.
“The IMF basically went from “eliminate Bitcoin laws or whatever,” to “make your already optional currency officially optional and phase out your applications, which no one likes anyway.” “El Salvador brought the IMF to its knees over its Bitcoin law,” commented a user.
These adjustments reflect the IMF’s efforts to address: Bitcoin Volatility and risks.
The country also promises major fiscal reform. It plans to reduce the fiscal deficit by 3.5% of GDP within three years through spending cuts and tax increases. also, El Salvador’s goals Increase foreign exchange reserves from US$11 billion to US$15 billion to ensure greater financial stability.
The International Monetary Fund acknowledged the country’s steady economic growth, driven by strong remittances and tourism growth. The agreement aims to strengthen public finances, promote sustainable development and maintain financial stability.
“Bitcoin use in El Salvador has always been voluntary, its usage has never been higher and continues to grow. The IMF’s view is untenable upon arrival. Chivo is one of dozens of wallets used in El Salvador 1. It doesn’t make sense whether it exists or not. Again, paying taxes in dollars? Yeah, whatever, man. ” Bitcoin savings rates and the share of properties purchased using Bitcoin as collateral are exploding. El Salvador owes its success to Bitcoin, not the IMF’s failed policies.” additional Max Kaiser.
To secure this arrangement, Salvadoran law opens the door to additional loans from other international financial institutions, potentially increasing total financing to more than $3.5 billion.
The agreement ends four years of negotiations with the International Monetary Fund, during which Bitcoin’s role The economic aspect is a key issue. The IMF’s executive board is expected to review and approve the agreement in the coming weeks. This development is a crucial step for El Salvador as it balances economic modernization Have financial stability.
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