But what does this mean for El Salvador?

The repurchase operation "seeks to reduce debt by reducing liabilities" and has the "purpose of improving liquidity in the long term".

The repurchase allows an early payment, but with the benefit of paying less, which is a legal operation. If this were not done, the country would have to pay more than US$282 million that has been saved with the prepayment.

This means a great advance for El Salvador, since it is currently in talks with the International Monetary Fund (IMF) to obtain economic benefits and thanks to this offer that has been launched to repurchase foreign debt, the bonds rose which translates into an interest of debt buyers for El Salvador, which is currently positioning itself as one of the most booming economies in the region.

A few days ago, IMF spokeswoman, Julie Kozack, stated that the multilateral will continue working with El Salvador to establish an agreement on a financing program.

Discussions with the government of President Nayib Bukele are focused on policies to strengthen fiscal and external sustainability and boost productivity growth and strength, as well as economic governance, among other issues.

It is worth mentioning that in 2022 the offer to repurchase external debt maturing in 2023 to 2025 was also announced; according to the government, the goal was to save between US$100 million and US$150 million.

In the same year, the Legislative Assembly approved initiatives aimed at allowing the Executive to make an early purchase of Salvadoran sovereign debt bonds maturing in 2023 and 2025.

These strategies seek to alleviate the national economy and provide a revaluation of salvadoran bonds in the international market.

Translated by: A.M