El Salvador Enlists Former IMF Official To Secure Deal Amid Bitcoin Challenge
Key Points:
- El Salvador seeks IMF deal with help from former official of the lender, Alejandro Werner, to overcome the challenges posed by Bitcoin risks and bond distress.
- Despite its economy’s growth despite adverse shocks, El Salvador is currently excluded from global bond markets and has turned to regional lenders for support.
El Salvador enlists IMF’s Alejandro Werner to secure a deal, faces challenges due to Bitcoin risks, is excluded from global bond markets, and seeks regional lenders. Credit-default swaps indicate a 79% chance of default within five years.
According to Bloomberg, El Salvador’s government has enlisted the help of Alejandro Werner, a former official of the International Monetary Fund (IMF), as an adviser in its efforts to secure a deal with the multilateral lender.
Werner, who retired in 2021 as head of the Western Hemisphere Department at the IMF, has been working with the Central American nation’s government this year, according to sources familiar with the matter.
However, the government of President Nayib Bukele has faced difficulties in securing an extended fund facility agreement with the IMF. The lender has repeatedly warned against the risks of using Bitcoin as legal tender, posing a challenge to El Salvador’s efforts to drive financial inclusion and innovation through the adoption of digital currencies.
El Salvador’s economy grew despite adverse shocks last year, but the country is currently excluded from global bond markets. With its $6.4 billion in notes trading deep in distress, El Salvador has sought regional lenders such as the Central American Bank for Economic Integration and Corporacion Andina de Fomento. Even though President Nayib Bukele repaid an $800 million bond earlier this year, credit-default swaps indicate a 79% chance of default within the next five years.
The situation in El Salvador has implications for other countries considering the adoption of digital currencies or seeking to access global capital markets. Market participants and policymakers alike will closely watch the role of multilateral lenders like the IMF in supporting such efforts.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
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El Salvador Enlists Former IMF Official To Secure Deal Amid Bitcoin Challenge
Key Points:
- El Salvador seeks IMF deal with help from former official of the lender, Alejandro Werner, to overcome the challenges posed by Bitcoin risks and bond distress.
- Despite its economy’s growth despite adverse shocks, El Salvador is currently excluded from global bond markets and has turned to regional lenders for support.
El Salvador enlists IMF’s Alejandro Werner to secure a deal, faces challenges due to Bitcoin risks, is excluded from global bond markets, and seeks regional lenders. Credit-default swaps indicate a 79% chance of default within five years.
According to Bloomberg, El Salvador’s government has enlisted the help of Alejandro Werner, a former official of the International Monetary Fund (IMF), as an adviser in its efforts to secure a deal with the multilateral lender.
Werner, who retired in 2021 as head of the Western Hemisphere Department at the IMF, has been working with the Central American nation’s government this year, according to sources familiar with the matter.
However, the government of President Nayib Bukele has faced difficulties in securing an extended fund facility agreement with the IMF. The lender has repeatedly warned against the risks of using Bitcoin as legal tender, posing a challenge to El Salvador’s efforts to drive financial inclusion and innovation through the adoption of digital currencies.
El Salvador’s economy grew despite adverse shocks last year, but the country is currently excluded from global bond markets. With its $6.4 billion in notes trading deep in distress, El Salvador has sought regional lenders such as the Central American Bank for Economic Integration and Corporacion Andina de Fomento. Even though President Nayib Bukele repaid an $800 million bond earlier this year, credit-default swaps indicate a 79% chance of default within the next five years.
The situation in El Salvador has implications for other countries considering the adoption of digital currencies or seeking to access global capital markets. Market participants and policymakers alike will closely watch the role of multilateral lenders like the IMF in supporting such efforts.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Thana
Coincu News
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