The Salvadoran bond due in 2025 was reduced to $349 million.

El Salvador announced on Monday the fulfillment of the payment of the Eurobond due on January 24, 2023, for an amount of $800 million and the interest generated by it, a debt that was acquired during the mandate of the ARENA president, Francisco Flores (1999–2004), and that the current government honored without mishaps, as reported by President Nayib Bukele.

The transaction carried out consists of the payment of $604 million plus $23 million in interest generated by said debt, since the government anticipated the expiration date with two repurchase offers made last year, in which it was able to repurchase $647 million in 2023 and 2025 securities. The current maturity reduction was nearly $195 million.

Meanwhile, the 2025 bond repurchase offer was the best received by the market. Negotiations with creditors allowed this $800 million debt issued during the Mauricio Funes administration (2009-2014) to be reduced to $349 million.

«This puts a positive and comfortable prognosis of external debt in Eurobonds until that date (2025),» explained César Addario, vice president of the firm Exor Latin America, to Diario El Salvador.

In detail, in the repurchase maneuver in September, El Salvador repurchased $432 million of the 2025 securities, while in the offer made in December, it accumulated $19 million more for a total of $451 million acquired two years after expiration and with a remaining balance of $349 million.

That is the country’s next payment commitment; the next one is scheduled for 2027 for $800 million, and then in 2029 it expects another for $601 million, according to official data.