The President of the Republic, Nayib Bukele, announced a new process for the repurchase of public debt; on this occasion, for the commitments that are pending to be paid from 2025 to 2029. This is, for now, the third operation of this type and will serve to give the State a more manageable financial situation.
“Today (April 8) we have launched the RE PURCHASE offer of our EXTERNAL DEBT, which expires from 2025 to 2029,” announced President Bukele, from his account in X. This offer will be valid until April 15 this year, at 5:00 pm New York time, United States.
According to the details shared by President Bukele, for this repurchase three packages, or tranches, of bonds have been made available to interested parties: maturing in 2025, for $347.92 million; that of 2027, for $800 million; and that of 2029, for $601.1 million. The Salvadoran government will decide which bids it can take and which it cannot, as market rules allow.
“All those who own bonds of the Republic of El Salvador can access this public and voluntary buyback,” the Governor stressed. Those investors who do not want to participate in this call can keep their bonds until the original maturity date and will always obtain their return on time.
This is the third time that the Government has initiated this process to reduce the weight of external debt in the economy. In short, the State offers to buy in advance its own bonds, which are still in the hands of investors. By completing the negotiations in a satisfactory and transparent manner, the Government manages to remove a heavy burden from its shoulders and the investor obtains his profit sooner than he had expected.
Today we have launched the RE PURCHASE offer of our EXTERNAL DEBT, which expires from 2025 to 2029 🇸🇻
All those who own bonds of the Republic of El Salvador can access this public and voluntary repurchase.
More information here:
— Nayib Bukele (@nayibbukele) April 8, 2024
After the buyback, the fees that the State pays from time to time for these commitments decrease. For example, in the first two repurchase operations, the savings for the State were greater than $285 million, compared to having waited for the original maturity date.
As a result, there is a greater balance in the financial situation of the State and with this the institutions dedicate more resources to education, infrastructure works, health, among other benefits for the population. Furthermore, President Bukele sends a positive and confident message to investors around the world: the Salvadoran State has every will to honor its debts and has the resources to achieve it.
#MARN #Emergency #decree #Lake #Coatepeque #actions #rescue
2024-04-09 05:29:54