El Salvador Secures $1.4 Billion IMF Loan, Agrees to $3.5 Billion Financing Package and Chivo Wallet Discontinuation

Dec 19, 2024, 01:39 PM

El Salvador has reached a staff-level agreement with the International Monetary Fund (IMF) for a $1.4 billion loan, part of a broader $3.5 billion financing package aimed at supporting the country’s economic reforms. This agreement, which follows four years of negotiations, includes significant changes to El Salvador's Bitcoin policies. The government has agreed to make the acceptance of Bitcoin voluntary for private sector businesses and to limit public sector involvement in Bitcoin-related activities. Additionally, the Chivo wallet, the government's Bitcoin wallet, is set to be sold or discontinued. The deal is subject to approval by the IMF Executive Board and is intended to help stabilize the country's economy and address its debt-to-GDP ratio.