Recently, the country paid the remaining US$800 million of bonds maturing in january 2023, and also repurchased US$452 million of debt maturing in 2025, assuming its financial obligations in a timely manner.

According to Bloomberg, "El Salvador is one of the most extreme examples of how the world's riskiest government bonds have recovered after being oversold last year by money managers who expected a wave of defaults".

Despite the skepticism of the international media and market analysts, the country's economic outlook has been different, as evidenced by the fact that the International Monetary Fund (IMF) also highlighted other actions of President Nayib Bukele's government, such as the security strategies that have led to a reduction in crime and strong income from remittances and tourism.

The minister of Finance, Alejandro Zelaya, said that due to such analysis of traditional media and market specialists about the default El Salvador would fall into, many bondholders who sold their positions at a discount lost millions of dollars.

With the adoption of Bitcoin as the currency of choice, there has also been a greater influx of entrepreneurs showing interest in investing in the country. According to data from Fitch Ratings, El Salvador's fiscal deficit is shrinking, closing 2022 at 4.6% of Gross Domestic Product (GDP), compared to 5.6% in 2021.

Translated by: A.M