The president of El Salvador, Nayib Bukele, yesterday announced a plan to buy back in advance sovereign debt bonds maturing between 2023 and 2025and guaranteed the resources for that purpose.
“We sent 2 bills to the (Legislative) Assembly to secure the funds to make a transparent, public and voluntary purchase offer to all holders of Salvadoran sovereign debt bonds from 2023 to 2025, at the market price at the time of each transaction,” Bukele posted on Twitter.
The president explained that the purchase will be made “at the market price (with the understanding that the market price will probably rise once we start buying all the available bonds)”.
In this sense, he advanced that the purchase will start in six weeks, which is the time it takes to present “all the paperwork”although he did not detail the amounts.
El Salvador’s public debt exceeds 80% of its GDP, according to official calculations. In January 2023 the country must pay about 800 million dollars in bonds.
Bukele assured that “El Salvador has enough liquidity, not only to pay all its commitments when due, but also to buy all its own debt (until 2025), in advance”, and rejected the publications that assured that the country was on its way to default.
Finance Minister Alejandro Zelaya, when presenting the project to Congress, declared that the debt sought to be purchased was acquired by the country during the governments of the opposition Nationalist Republican Alliance (Arena, right) between 1989 and 2004.
Get the latest news in your email
Everything you need to know to start your day
Registering implies accepting the Terms and Conditions