Wednesday, 27 July 2022 02:34

Treasury presented two initiatives to advance payment of bond debt in january 2023

Written by Evelyn Alas

The President of the Republic Nayib Bukele, informed through his Twitter account that this day they sent 2 bills to the Legislative Assembly to secure funds and make a transparent, public and voluntary purchase offer to all bondholders of salvadoran sovereign debt from 2023 to 2025, at the market price at the time of each transaction.

The minister of Finance, Alejandro Zelaya, said in a press conference that one of the initiatives is related to the use of the special drawing rights assigned by the International Monetary Fund (IMF), in 2020 by Covid 19.

With these funds granted to the country by the multilateral organization, the Minister of Finance stated that the objective is to make use of them to increase solidity and advance debt payment in 2023.

In addition to these special drawing rights, a 10-year bond will be issued by this State portfolio that will guarantee the robustness of the financial position of the Banco Central de Reserva (BCR).

After those 10 years, the Treasury will pay those funds that it has momentarily lent to maintain the financial soundness. They also presented an initiative for the Legislative Assembly to allow them to subscribe a US$200 million credit with the Central American Bank for Economic Integration (CABEI), to carry out a reimbursement operation for investment expenses.

In addition, President Nayib Bukele expressed, in his social network, 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.

Minister Alejandro Zelaya, confirmed that recently, Morgan Stanley, a well-known stock market bank, endorsed the government's commitment and confirmed that it has the capacity to make payments on time.