El Salvador Defies IMF Again With Fresh Bitcoin Purchase Following Loan Review

El Salvador bought eight additional bitcoins on Tuesday despite the international monetary fund (IMF) that repeated its pressure on the ground to freeze the government crypto of acquisition under conditions of $ 1.4 billion loan agreement.

New acquisition of bitcoin, announced Author El Salvador Bitcoin’s Office, followed soon after the IMF -AI Staff El Salvadoran reach Staff Agreement on the first review of the 40-month extended fund (EFF). An overview of economic reforms was praised by El Salvador for fulfilling most goals and improvements of macroeconomic stability.

The IMF has noticed progress in structural reference values, fiscal reforms and inflation control. However, he also warned that he would continue his efforts to ensure that the total bitcoin that is held in state banknotes remains unchanged. He again confirmed the July deadline for abolishing participation in the public sector in the State Chiva wallet.

The IMF stated several times ago. But that has little success. Earth now holds almost 6,200 BTC worth of more than $ 674 million, according to Arkham intelligence service.

Despite the earlier obligations to limit the participation of the state in the crypto activities, its Bitcoin office is continue Expand national reserves with regular purchases.

This sets a quiet deviation between the Administration of the IMF -AI President Nayib Bukele. While the Government officially paused direct purchases of Bitcoin to be in accordance with the loan agreement, the Bitcoin office operates outside the defined fiscal sector.

The legal difference allows him to continue the small daily acquisition without violating the criteria of success.

“In terms of El Salvador, let me confirm that they are still in accordance with their commitment to the non-acumulation of Bitcoin by the entire fiscal sector, which are the success criteria we have,” said the director of the Western Hemispheres of the IMF Rodrigo Valdes during the print in April for the regional economic look, reported per Decryt.

Bukela’s president, who made Bitcoin central for his global image, has mockered Proposals to end politics.

Recent legal reforms have taken away Bitcoin of mandatory legal status, but retained it as an optional currency, satisfying IMF conditions with the preservation of Bukele’s narrative.

Behind the IMF package of $ 1.4 billion, it is expected that a wider agreement will unlock another billion dollars of the Development Bank financing and support El Salvador’s efforts in public debt control, which reached 85% of GDP last year.

Edited Sebastian Sinclair