El Salvador Difficult to Get IMF Loans, Bitcoin is the Cause

Liputan6.com, Jakarta The El Salvador government's adoption of Bitcoin has been a negative factor in the country's negotiations with the International Monetary Fund (IMF).

Reporting from Bitcoin.com, Thursday (11/4/2024), according to the latest report, the institution is demanding changes to El Salvador's Bitcoin law to accept a credit limit of USD 1.4 billion or the equivalent of IDR 22.1 trillion (assuming an exchange rate of IDR 15,853 per US dollar) to accelerate payment of public debt and other obligations.

Talks with the IMF stalled two years ago when President Nayib Bukele did not agree to review the Bitcoin Law, which established bitcoin as legal tender in the country by 2021.

Objective

Bukele's government aims to secure a credit line of USD 1.4 billion to help speed up debt payments and other obligations.

Nonetheless, the IMF has sent a clear message on this issue. IMF Communications Director Julie Kozack stated the risks associated with Bitcoin were a key element in discussions with Salvadoran authorities.

However, while the agency has expressed concerns about bitcoin to Salvadoran authorities, Bukele has doubled down on his crypto policy since he was re-elected in February.