The US has expressed support for El Salvador's decision to eliminate presidential term limits, a move that has sparked debate over democratic stability, with critics warning of authoritarian risks while Bukele's popularity remains high due to his security policies. International reactions are mixed, and the US stance marks a shift from previous criticism of prolonged presidential terms in Latin America.
El Salvador is negotiating a $1.3 billion loan with the IMF, which requires scaling back its use of Bitcoin as legal tender and reducing government deficits. The deal could unlock additional funding from the World Bank and Inter-American Development Bank. The IMF has opposed El Salvador's Bitcoin adoption due to financial stability concerns. President Nayib Bukele's government plans to make Bitcoin acceptance voluntary for businesses and reduce the budget deficit. Despite Bitcoin's limited use among citizens, Bukele has focused on economic revival and foreign investment, leading to improved sovereign bond ratings.
El Salvador's President Nayib Bukele has registered to run for reelection next year, despite objections from legal experts and opposition figures who say the country's constitution prohibits his candidacy. Bukele's approval ratings are running above 80% in many polls, following a reduction in crime stemming from his harsh-but-popular crackdown on gangs. While constitutional bans on reelection were once common in Latin America, those term limits have been removed, overturned or ignored in a number of cases, including Honduras, Nicaragua, Venezuela and Bolivia.
El Salvador has extended its state of emergency for the 12th time, which suspends certain civil liberties and allows arrests without warrants, government access to private communications, and detentions without the right to a lawyer. The measures have led to around 66,000 arrests in the Central American nation, but human rights groups and United Nations experts have raised serious concerns around violations of due process, arbitrary arrests, and mistreatment of detainees. President Nayib Bukele's government plans to ensure that detainees remain behind bars, particularly in advance of 2024 elections.
