IMF Tensions Rise as El Salvador Doubles Down on Bitcoin

[tradelikepro]

International Monetary Fund negotiations with El Salvador are facing strain as the country continues accumulating Bitcoin.

The IMF approved a 40-month, $1.4 billion Extended Fund Facility in February 2025. However, further reviews — tied to loan disbursements — have stalled amid concerns over fiscal stability and continued crypto purchases.

Bond markets are reacting. Credit default swaps have climbed to a five-month high, and El Salvador faces $450 million in bond payments this year, rising to nearly $700 million next year.

Analysts warn: if IMF support weakens, investor confidence could deteriorate quickly.

El Salvador’s Bitcoin policy is no longer just about crypto — it’s now central to its sovereign debt outlook.

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$300m paper loss in four months… ouch, bear market really bites sovereigns too