Wednesday, 27 July 2022 21:10

US$560 million to negotiate the sale of debt 2023-2025

Written by Evelyn Alas

The minister of Finance, Alejandro Zelaya said in a morning interview that with the US$560 million that the Special Drawing Rights from the International Monetary Fund (IMF) and the bond signed with the Central American Bank for Economic Integration (CABEI), they will start negotiating with bondholders who wish to sell the 2023-2025 debt which amounts to US$1,600 million.

According to the official, this is the amount of money the country has to repurchase the debt of the 2023-2025 bond maturity at nominal price.

Likewise, economist Rafael Lemus explained in an interview that yesterday's news led to a rise in the value of bonds maturing next year from 76% to 86%, up 10 points, and those maturing in 2025 rose from 35% to 49%.

According to the economic expert, this debt is not going to be paid in full, but the Ministry of Finance could refinance it.

With these funds that the multilateral organization granted to the country, the Minister of Finance affirmed that the objective is to use them to increase the solidity and advance debt payment for 2023 and 2025.

In addition, Zelaya expressed that El Salvador has enough liquidity, not only to pay all its commitments when due, but also to buy its own debt in advance.

The Special Drawing Rights is a means of international payment used by the IMF in its operations, added the Finance minister.

They expect that some bondholders will be interested in selling; there are already talks with a national bank that will be the structurer of the instrument.