El Salvador bonds tumble as investors eye bitcoin use, IMF talks – Reuters

El Salvador bonds tumble as investors eye bitcoin use, IMF talks – Reuters

NEW YORK, Sept 16 (Reuters) - El Salvador bond spreads to U.S. Treasuries hit a record high on Thursday on growing investor fears the Central American nation will not reach a potential $1 billion loan agreement with the International Monetary Fund and faces negative credit implications linked to its use of bitcoin.

S&P Global said risks associated with the country's adoption of bitcoin as parallel legal tender to the U.S. dollar "seem to outweigh its potential benefits" and there are "immediate negative implications for credit." read more

S&P also said the use of bitcoin threatens a potential deal between El Salvador and the IMF.