IMF and El Salvador Deal Might Not Be the Ultimate Solution

The Finance Minister of El Salvador, Alejandro Zelaya, stated that the IMF deal has the least potential impact.

The IMF deal that was struck by El Salvador in March 2021 stood at $1.3 billion. The deal was carried out to fill the deficiencies in the country’s budget. The deal was also struck to reduce the high debt of the country, which crossed $24 billion in March.

Ever since the country adopted bitcoin as a legal tender, it has been facing backlash from the IMF to revert its decision.

In his remarks on Thursday, Zelaya played down the budgetary implications of the agreement, which he stated would equate to less than 10% of the national budget. He said conversations with the IMF are still ongoing.

While several analysts stated that the deal would help in improving the sturdiness of the country, Zelaya thinks otherwise.

I’ve seen that some analysts believe that the deal with the IMF is going to completely improve the health of the country’s public finances, and no, it is one part of our strategy for improvement.

In other news, Bitfinex plans to donate over $1.3 million worth of BTC and USDT to El Salvadorian communities. The donation includes 36 bitcoin and $600k worth of USDT to its communities. The bitcoin will be sent to the chivo wallets and will be aimed at different communities and projects.

The donation will seek to improve budding businesses and communities in the areas of Apopa, Ilopango, and Soyapango.