- El Salvador’s Fitch rating upgraded from ‘CCC+’ to ‘B-‘
- IMF deal worth $1.4 billion over 40 months
- Bitcoin reserves now over $572 million
The first nation to adopt Bitcoin as legal tender just got an upgrade of its Fitch rating. The news arrived after El Salvador set a historic deal with the International Monetary Fund. The “Fitch Ratings” is a global credit rating agency that evaluates the economic performance of issuers and assesses their creditworthiness.
On January 7th, El Salvador got its rating upgraded from ‘CCC+’ to today’s ‘B-’ rating. This new score puts the Central American country in front of some of the largest economies in Latin America, including Argentina and Bolivia.
The driving force behind Fitch Ratings’ upgrade was the previously reported IMF deal, on November 19. At the time, El Salvador and the International Fund agreed on a $1.4 Billion distributed over 40 months, with the intention of reducing the nation’s debt.
These two parties got to the agreement after President Bukele agreed to let go of part of the country’s crypto developments, including a concession to allow private businesses to choose whether or not they accept Bitcoin as payment.
El Salvador Continues To Buy Bitcoin
The IMF agreement hasn’t stopped President Bukele from continuing to add Bitcoin to El Salvador’s reserves. According to the live tracker, El Salvador added another 22 BTC on December 20, totaling over $2 million in value.
El Salvador now holds over $572 million in BTC, cementing itself as the sixth-largest Bitcoin reserve by a Nation. The nation also recently welcomed Bitfinex as the crypto firm received a DASP license in the nation, a story you may read more about here.
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