IMF Reaches Agreement with El Salvador for $1.4 Billion Loan
- Program comes after sides negotiated terms for four years
- Risks related to Bitcoin are being mitigated, IMF says
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El Salvador reached a deal with the International Monetary Fund after four years of negotiations that were strained by the country’s adoption of Bitcoin as a legal tender.
The Central American nation and the Washington-based lender agreed on a $1.4 billion loan program to be disbursed over 40 months, according to a statement by the IMF. In exchange, El Salvador had agreed to adopt measures that will improve its primary balance and help cut its debt-to-GDP ratio.