El Salvador: Finance minister launches retaliation after IMF criticism

Cryptheory recently reported that the International Monetary Fund (IMF) had harshly criticized El Salvador’s BTC policy. The finance minister there does not let this sit on his back. Rather, he recently in an interview with the Channel 21 retaliated. Alejandro Zelaya explained in it according to media reports, not to think at all of moving away from the previous strategy. He said that no international organization will force El Salvador to do anything. He saw the IMF’s request as a clear affront to the country’s independence. zelaya added that it is logical for the IMF to point out the state’s debt. Because there have been situations in the past in which questions of the state budget were not tackled with the necessary zeal.

“It is logical that the IMF highlights negative situations of the country’s debt, there are situations that we have been dragging from previous administrations”

Ministro Alejandro Zelaya: "Es lógico que el FMI destaque situaciones negativas de la deuda de país, hay situaciones que venimos arrastrando de administraciones anteriores" pic.twitter.com/kz2VYlSsVI

— Diálogo con Ernesto López (@dialogo21) January 31, 2022

IMF has doubts about El Salvador’s solvency

The IMF last week recommended that El Salvador liquidate the $150 million trust fund established when cryptocurrency became legal tender. All funds not used should flow back to the state treasury. The organization cited concerns about volatility in BTC prices and the possibility of criminals using the cryptocurrency.

Zelaya countered that El Salvador has complied with all regulations on financial transactions and money laundering. The trust fund was intended to allow for the automatic conversion of BTC into US dollars. Above all, this should allay the skepticism of people who reject BTC because of its volatility. The US dollar is currently El Salvador’s other official currency.

There is no risk of default in the country. El Salvador has consistently met all of its international and domestic debt obligations and will continue to do so

, explained the finance minister on the state of the country. El Salvador and the IMF have been negotiating a $1.3 billion loan for months.