Central American Nation El Salvador Continues to Prioritize Bitcoin Despite IMF Warning

The nation's economic minister on Wednesday said that despite being asked to reduce its BTC purchases in light of a $1.4 billion loan agreement, Bukele's government is still accumulating.

Central American country El Salvador is still buying Bitcoin despite a recent warning from the International Monetary Fund (IMF).

The nation’s economic minister on Wednesday said that despite being asked to reduce its BTC purchases in light of a $1.4 billion loan agreement, Bukele’s government is still accumulating.

The IMF, however, had recently claimed that the Salvadorian government was complying with the loan conditions.

Earlier this year, the IMF approved a $1.4 billion loan program for El Salvador. The lender also stated that it would be keeping a close watch on the program’s implementation.

However, in its Article IV review of the Salvadoran economy, the IMF noted that the government had not yet met the agreed-upon benchmarks for reducing the public sector wage bill.

The lender also pointed out that the Salvadorian government had begun purchasing Bitcoin again in March, after a brief pause to comply with the loan conditions.

The lender had previously advised the Salvadorans to wind down their Bitcoin holdings in December 2022.

As such, the new purchases by Bukele’s government are in breach of the loan agreement with the IMF.

Moreover, a recent report by CoinGape revealed that El Salvador complied with the loan conditions. Notably, the Central American country paused its BTC purchases with public sector funds recently, abiding by the IMF’s loan agreement.

However, the Salvadorian economy minister’s recent comments have stirred up contrary discussions on the matter.

Earlier this year, the Salvadorian government disclosed that it had purchased 6,449 BTC, which was valued at $568 million at the time.

However, with the broader market’s bullish action, this Bitcoin fortune has become even more significant. At press time, BTC price today stood at the $95K price level.

On the other hand, the Salvadorian government has not disclosed its current sources for BTC accumulation.

As a result, while global market watchers are left speculating, the IMF blames the nation for not keeping the accord. Nonetheless, BTC continues to secure a hotspot on institutions’, nations’, and investors’ radars, showcasing the potential for massive returns ahead.