IMF Reaches $1.4 Billion Agreement with El Salvador on 40-Month Program, Bitcoin Risk Mitigation

Dec 18, 2024, 08:28 PM

The International Monetary Fund (IMF) has reached a staff-level agreement with the government of El Salvador on a 40-month Extended Fund Facility (EFF) arrangement aimed at supporting the country's economic reforms. This agreement, which is subject to approval by the IMF Executive Board, comes after four years of negotiations that were complicated by El Salvador's adoption of Bitcoin as legal tender. As part of the $1.4 billion program, the IMF has emphasized that the acceptance of Bitcoin by the private sector will be voluntary, and public sector involvement in Bitcoin-related activities will be limited.