The price of El Salvador’s bonds surged after the IMF announcement. The multilateral recently stated that it will continue working constructively with the Government to reach an agreement on a financing program.
Following the statement by the International Monetary Fund (IMF) spokesperson, Julie Kozack, in a press conference last Thursday, affirming that the multilateral will continue working with El Salvador to establish an agreement on a financing program, the country’s bond prices experienced an increase.
“Bloomberg,” the specialized magazine, shared by President Nayib Bukele, reported that “El Salvador’s dollar bonds rose along the curve on Friday, outperforming most of its emerging peers, as an International Monetary Fund spokesman said discussions with the country on a financing program are underway.”
According to the article, the country’s bonds maturing in 2032 rose on Friday by 1.4 cents per dollar to 86 cents, “the highest level since mid-February,” according to indicative pricing data compiled by the specialized magazine. Likewise, bonds maturing in 2035 increased by 1.2 cents per dollar to 79 cents.
The increase in bond prices reflects an interest from debt buyers in El Salvador, which is currently emerging as one of the most dynamic economies in the region. Evidence of this is its growth outpacing that of the United States at the close of last year.
“The IMF technical staff continues to collaborate constructively with the Salvadoran authorities with the aim of reaching an agreement on an IMF-backed program,” stated Kozack.
She added that discussions with the Government of President Nayib Bukele focus on policies to strengthen fiscal and external sustainability and boost productivity and resilience, as well as economic governance, among other issues.
It is important to highlight that since mid-2023, it has been known that the IMF could reach an agreement with the country after the presidential elections held in February.