Saturday, January 28, 2023

El Salvador will “only” pay US$347 million in 2025 bonds, according to the Government

El Salvador “only” must pay US$347 million of a debt in bonds, originally US$800 million, maturing in 2025, according to what the head of the Ministry of Finance, Alejandro Zelaya, said on Wednesday.

The official explained, during the Face to Face television interview, that the foregoing is due to the early purchase of debt that the Executive of President Nayib Bukele carried out in 2022.

Bukele announced on December 7 of last year that El Salvador had completed “the second repurchase of its sovereign bonds maturing in 2023 and 2025; acquiring in both operations bonds for more than US$647 million (US$74 million in this operation)”.

According to the Salvadoran president, his government paid “in full” and the interest on the 2023 bonds for US$800 million that matured this month.

Zelaya pointed out, without detailing, that the country fulfilled its 2023 obligation “thanks also to the increase in tax collection, cuts in public spending and having the support of multilateral organizations.”

In addition, he added that by 2027 the Central American country must pay another US$800 million in bonds that mature that year and whose debt the government had not mentioned before today.

According to the Statistical Registry of Securities Issuances of the Republic of El Salvador of the Superintendency of the Financial System (SSF), between 2023 and 2025 Salvadoran bonds for US$1.6 billion mature.

At the end of 2022, economist Ricardo Castaneda, from the Central American Institute for Fiscal Studies (Icefi), told EFE that the financial situation of the Government of El Salvador in 2023 will remain “critical” as a result of the commitments it has to fulfill.

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