ChainCatcher message, El Salvador has reached an agreement with the International Monetary Fund (IMF) after four years of tense negotiations due to the country's adoption of Bitcoin as legal tender.
According to a statement from the IMF, both parties have agreed on a $1.4 billion loan program to be disbursed over 40 months. In exchange, El Salvador has agreed to take measures to improve its fiscal balance and help reduce its debt-to-GDP ratio. The IMF praised the government's efforts to improve fiscal conditions, develop the economy, reduce inflation, and manage short-term debt.