The International Monetary Fund (IMF) has announced that it has reached “preliminary understandings” with El Salvador as both parties work towards an agreement aimed at fostering economic growth and improving the nation’s fiscal health.
According to a statement from the IMF, “Significant progress has been made in negotiations for a Fund-supported program, which will focus on enhancing public finances, bolstering bank reserve buffers, improving governance and transparency, and addressing risks associated with Bitcoin.”
The agreement includes plans to improve the primary balance by approximately 3.5 percent of GDP over the next three years. This consolidation will be achieved through measures such as “rationalizing” the public wage bill.
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The IMF has previously voiced concerns about El Salvador’s use of Bitcoin as legal tender. “Although many of the risks have not yet come to fruition, there is mutual recognition that additional efforts are needed to improve transparency and mitigate potential fiscal and financial stability risks related to the Bitcoin initiative,” the IMF stated.
Additionally, progress has been made on strategies to enhance reserve buffers within the financial system and on improving governance and transparency, according to the IMF.
Bloomberg
David Ma was born in 1980 in California, is a Vietnamese American, known as one of the entrepreneurs and investors in the field of cryptocurrency and stock market. In 2006, he graduated from Stanford University with honors and began his career in business.
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