IMF urges El Salvador not to buy Bitcoin before a loan agreement 120 million dollars

The technical staff of the International Monetary Fund (IMF) arrived, as reported on May 27, to an agreement with El Salvador to disburse them 120 million dollars after an initial review of the loan agreement of 1.4 billion dollars signed last year. This is in the event that the agency’s executive directory approves it. However, he indicated in the announcement that they will continue to seek that the country stops their purchases of Bitcoin (BTC).

The IMF statement declared that “efforts will continue to ensure that the total amount of Bitcoin in all governmental property portfolios remains unchanged, in line with the program commitments.” While the organism with this showed no intention that El Salvador gets rid of their holdings in the digital currency, He urged again to leave his shopping strategy.

In addition, he pointed out that the withdrawal of the participation of the public sector in the Wallet of Bitcoin, Chivo, by the end of July is guaranteed. In this way, the fund reflects a continuity in its critical approach to the adoption of Bitcoin by the Nayib Bikele government.

In any case, the agency stressed that the Salvadoran authorities have made significant advances in the implementation of their economic reform plan within the framework of the program supported by the IMF. “Most of the programmatic objectives set for the first examination were fully met, and the application of structural parameters is progressing satisfactorily,” he said.

«Despite a more challenging external context, El Salvador’s economy continues to expand by greater confidence and still solid remittances. The most favorable prudent policies and exchange have led to the reduction of inflation and current account deficit. »

International Monetary Fund

As the IMF clarified, Fiscal consolidation in El Salvador will continue this year through cuts in the salary mass and the current containment of state spending. “Plans are being prepared to reform public administration and pension systems to underpin the adjustment beyond this year,” he also warned. This mentioned that it will be backed by the new Fiscal Sustainability Law, which expects to promulgate shortly.

He deepened that the country’s reserves will also be strengthened by accumulating government deposits in the Central Bank, backed by the financing of international financial institutions and fiscal discipline. Meanwhile, the liquidity requirements of in line banks will be increased with the program commitments, while the bank supervision is increased, including that of cooperatives.

He also added that, after the approval of the Anti -Corruption Law, the attention will now focus on guaranteeing its appropriate and timely application to complement the current efforts to improve governance, accountability and transparency, including fiscal accounts of the public sector in general.

“There is a shared understanding that the firm implementation of programs and the agile formulation of policies, in the context of the growing world uncertainties, remain fundamental to further strengthen stability and lay the foundations for a more solid and sustainable growth,” concluded the IMF statement, thanking the Salvadoran authorities for “the excellent collaboration and constructive debates.”

El Salvador remains firm buying 1 bitcoin a day, despite IMF pressure

As every day, the Bitcoin office of the Government of El Salvador today reported the purchase of a bitcoin, after the presentation of the IMF agreement. In this way, the Bukele administration shows that This strategy remains firm despite the agency’s efforts to deter it.

With this acquisition, the country already accumulates 6,190 BTC, now equivalent to more than 670 million dollars, considering that Bitcoin is quoting around 109,000 dollars, as cryptoics reported. These reserves have been staggered for a total of 291 million dollars, which reflects unrealized profits of 380 million dollars, according to Dopstab data explorer.

While there are doubts about where the funds for such purchases come from or even if they are mined currencies, the IMF disbursement agreement in El Salvador demonstrates that its investment in Bitcoin, which records an appreciation of 130%, has not been an impediment to agree on the disbursement of the 120 million loan. This is despite the risks that the agency sees in the price volatility of the digital currency.