Nayib Bukele silences sceptics as El Salvador pays off its $800 million debt in full

This month, El Salvador wiped off its debt of $800 million. Foreign bonds to the tune of $6.4 billion are currently issued.

Nayib Bukele silences sceptics as El Salvador pays off its $800 million debt in full. El Salvador’s debt of $800 million has been paid in full, as declared by President Nayib Bukele, who slammed claims of defaults.

El Salvador made one of the bold choices in the history of modern economics in 2021 when it adopted Bitcoin as legal cash. The decision was widely criticized by organizations such as the International Monetary Fund (IMF). The IMF even encouraged the North American nation to abandon Bitcoin as legal cash, citing financial stability and consumer protection threats.

In February 2022, Flitch Ratings lowered El Salvador’s long-term foreign currency issuer default rating (IDR) from B to CCC. The decision to reduce the rating was principally influenced by the maturation of $800 million in Eurobonds this month.

El Salvador’s president responded on Twitter to media predictions that the nation will default on its debt. Nayib Bukele said that El Salvador repaid its $800 million loan in full, plus interest. He remarked of the media, “They lie, and when their falsehoods are revealed, they go into quiet mode.”

Bloomberg reports that El Salvador repaid a chunk of its debt via government buybacks. It was made feasible by a loan from the Central American Bank for Economic Integration in the amount of $450 million.

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