El Salvador and the International Monetary Fund have reached an agreement for the country to limit domestic bitcoin-related activities in exchange for a financing package.
The IMF’s Extended Fund Facility, which is expected to extend over the course of 40 months, includes a $1.4 billion loan to back El Salvador’s reform agenda and address the country’s balance of payment needs.
With additional financial support expected from the World Bank, the Inter-American Development Bank, and other regional development banks, the total financing package is expected to be worth over $3.5 billion, the IMF said.
“Recognizing El Salvador’s pending macroeconomic and structural challenges, the IMF-supported program aims to strengthen fiscal and external stability and help create the conditions for stronger and more inclusive growth,” IMF wrote in its announcement.