President of El Salvador Announces End of External Borrowing for Budget Financing

El Salvador’s President Nayib Bukele has announced the cessation of external borrowing to finance the national budget. This decision, made public in September 2024, marks a significant shift in the country’s economic policy, which previously relied heavily on external loans.

The announcement also highlights the country’s continued focus on Bitcoin as a means of economic stability and growth. El Salvador was the first country in the world to adopt Bitcoin as legal tender, and it now leverages cryptocurrency to reduce its financial dependence on international creditors.