President Nayib Bukele made the purchase of external debt official last Monday, September 12, an action considered by many to be a strategic move, and which confirms the economic stability that the country currently has.
In this regard, Luis Rodríguez, country director of the Central American Bank for Economic Integration (CABEI), affirmed that the government will comply with its debt commitment and ruled out the possibility of default, since «the government of El Salvador has always fulfilled its commitments» .
«Obviously, the announcement by the president [Nayib Bukele] is a confidence-boosting signal that the country is going to comply with a fairly complex commitment, which has been taking place for years,» explained the CABEI executive.
He added that the launch of the purchase of the bonds generates confidence to continue supporting the different projects that El Salvador executes, not only for CABEI but also for the private sector, international investors, and other multilateral organizations and other countries.
«For us, it is a very clear signal that things are being fixed, that there is a plan for this. We do not stop supporting everything necessary, not only in short-term debt, but also in the financing of other types of initiatives and projects. For us it is a sign to move on », he explained.
Rodríguez added that, although there has been much criticism in this regard, as CABEI, they have been emphatic that they will continue to leverage the national economy, since they continue to be the main multilateral that finances El Salvador’s projects in general.
The government expects to save between $100 million and $150 million with the financial maneuver, announced yesterday, of early purchase of the 2023 and 2025 debt maturities. The strategy allows all holders of bonds in El Salvador to access the public repurchase.