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- El Salvador repurchased its bonds maturing in 2023 and 2025 for $565M.
On Wednesday, President Nayib Bukele informed that El Salvador purchased back its sovereign debt bonds maturing in 2023 and 2025 for around $565 million. Following official information, El Salvador bought 54% of the bonds maturing in 2025 for a total of $432million. And it purchased 22.4% of the bonds maturing in 2023 for a total of $133 million.
Nayib Bukele mentioned that El Salvador would launch a new offer for the rest of the 2023 and 2025 bonds in eight weeks. As with the recent repurchase, it will be followed “at market price.” adding more Bukele mentioned that the initial repurchases have saved the country more than $275million.
The bond buybacks launched on September 12 are seen as an effort by El Salvador to banish rumours of a possible default on its loans. The central American nations have had strained connections with the traditional credit market since the establishment of bitcoin(BTC) as a legal tender in September 2021.
Will, the Initiative of El Salvador, benefit the nation?
In 2021, El Salvador became the country’s first to opt for Bitcoin as a legal tender. It is also believed that the president of El Salvador, Nayib Bukele is a Bitcoin evangelist, and he gathers limelight because of his statements favouring Bitcoin.
A globally known investor Simon Dixon highlighted that “Betting a percentage of a country’s future, I believe, is a completely responsible, not irresponsible strategy, and the IMF wants countries to follow irresponsible strategies of fiat-based Ponzi scheme debts.”
A statement from the president of El Salvador went viral when he stated, “I saw that some peoples are worried or anxious about the Bitcoin market price.” He said, ” Stop looking at the graphs and enjoy life. If you invest in Btc your investment is safe and its value will immensely grow afrer the bear market.”
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
