El Salvador Suspends Bitcoin Buys to Meet IMF Loan Terms

El Salvador has abandoned the use of public funds to purchase Bitcoin, according to the latest report from the International Monetary Fund (IMF).

The UN agency included this clause as part of loan conditions for the South African nation, as President Nayib Bukele explores other alternatives to fund BTC buying.

The IMF said El Salvador remains in compliant with its pledge to stop Bitcoin accumulation in the public sector, a key performance target. It added that broader reforms in areas like governance, fiscal transparency, and structural changes are also progressing.

El Salvador Suspends Bitcoin Buys to Meet IMF Loan Terms

In a recent press briefing, the IMF’s Western Hemisphere Department stated that El Salvador has suspended the Bitcoin accumulation using taxpayer funds.

Director of the agency’s Western Hemisphere Department Rodrigo Valdes edged the recent U-turn by Bukele’s administration to comply with loan terms.

Per the report, the $1.4 billion loan deal mandates El Salvador to pause the use of public cash to bump its BTC treasury. Valdes noted that the country’s response to the loan terms has been positive despite initial rejections by Bukele.

He explained:

“In terms of El Salvador, let me say that I can confirm that they continue to comply with their commitment of non-accumulation of bitcoin by the overall fiscal sector, which is the performance criteria that we have.”

In addition to the public fund Bitcoin purchase halt, Valdes reiterated that El Salvador is also stepping up its financial and structural reforms.

He noted:

“The program of El Salvador is not about Bitcoin. It’s much more, much deeper in structural reforms, in terms of governance, in terms of transparency.”

El Salvador Quietly Continues Bitcoin Accumulation Amid IMF Compliance

Rumors suggest that Bukele is actively assessing other ways to fund the asset’s purchase.

Despite recent reports of a halt in the public BTC fund route, the South American nation has continued to bolster its Bitcoin coffers.

Per details from the National Bitcoin Office, the country is increasing its coffers by one BTC per day. According to Arkham data, the country’s Bitcoin stash stands at 6,160 BTC, valued at $579.59 million.

At the same time, Bukele has maintained that the nation will continue its BTC stashing without defaulting on the IMF loan terms.

However, the country is yet to publicly declare its Bitcoin funding sources. Some market commentators suggest that the nation may be funding its daily BTC accumulation using Strategic Bitcoin Reserve revenue.

At the time of writing, Bitcoin is changing hands at $93,897 after a modest intraday slip. Its current market sentiment is bullish, amplified by the recent whale accumulations.

This trend is reflected in the high Fear and Greed score of 61, signaling that buyers have currently stepped in at this level. In the past month, Bitcoin has seen 17 green sessions as the market outlook remains positive.