The bond repurchase is viewed as El Salvador attempt to allay concerns about a probable debt default.
President Nayib Bukele said on Wednesday that the South American country had repurchased $565 million worth of its debts due in 2023 and 2025.
El Salvador reportedly paid $432 million for 54% of the 2025 bond issue, according to government data. Additionally, it invested $133 million in 22.4% of the 2023 bond maturities.
In eight weeks, according to Bukele, the South American country will make a new offer for the remaining 2023 and 2025 bonds. It will be carried out “at market prices,” Bukele stated, similar to the most recent repurchase. Bukele claims that the initial repurchases saved the nation more than $275 million.
The South American country initiated a bond repurchase on September 12 in an effort to allay concerns about a probable debt default. Relations between the Central American nation and the conventional credit market have been strained, especially after it made bitcoin (BTC) legal tender in September 2021.
El Salvador’s long-term foreign currency issuer default rating (IDR) was lowered this week by Fitch Ratings from CCC to CC, indicating that the nation is likely to default on its bond due in early 2023.