El Salvador buys back sovereign bonds to reduce debt

Hull Invest

The Republic of El Salvador has announced that it has completed a second round of repurchases of government bonds maturing in 2023 and 2025.

according to press release The country, shared by President Nayib Bukele, bought $74 million worth of government bonds on December 8.

In September, the government bought back approximately $565 million worth of bonds.

The debt was issued by El Salvador’s previous government in 1999 and 2004, with 2023 and 2025 bonds worth $800 million each, ABC said. report.

President Bukele celebrated the achievement on Twitter, saying the bond buyback had generated more than $288 million in savings in interest payments for the state.

The bond buyback program has successfully alleviated widespread market concerns about El Salvador’s solvency. Since introducing Bitcoin as legal tender in September 2021, the IMF and World Bank have warned the country of the implications of its bold decision.

The government of El Salvador invested so much in Bitcoin that its value plummeted, prompting many to question the country’s ability to service its debt.

However, both the country’s president and government have reportedly dismissed concerns and are still pursuing plans to issue Bitcoin-denominated bonds.

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