The President of El Salvador announced the repurchase of part of government bonds maturing in 2023 and 2025 for a total of $565 million. According to the authorities, El Salvador bought 54% of bonds maturing in 2025 for a total of $432 million and 22.4% of bonds maturing in 2023 for a total of $133 million. The early bond buyback allowed the country’s authorities to save more than $275 million.
The President of El Salvador also spoke about plans to place a new offer for the remaining bonds of 2023 and 2025 in two months. The new bond placement will be held at market prices
The bond repurchase launched on September 12 by the authorities of El Salvador is designed to refute mass rumors about the likely scenario of a default of public debt, which arose due to strained relations with the market for attracting investments and loans.
The situation with external lending to El Salvador was significantly complicated in September 2021 after Bitcoin was declared a legalized means of making payments within the country and thereby encouraging the adoption of cryptocurrencies at the national level. It has also been repeatedly reported that the state program for the integration of El Salvador into the Bitcoin environment regularly encountered large-scale technical failures.