El Salvador Strengthens Fiscal Discipline as Public Debt Payments Remain on Track.

El Salvador’s government paid $1.3077 billion in public debt interest between January and September 2025, according to the Central Reserve Bank (BCR). The figure reflects a 6% increase compared to the same period in 2024, demonstrating the government’s continued commitment to meeting its financial obligations on time.

Like any borrower, the Salvadoran government covers both interest and principal payments as part of its fiscal responsibilities. These payments, which slightly exceeded public investment spending of $1.18 billion in the same period, highlight the administration’s focus on maintaining trust with creditors while advancing national development projects.

According to the BCR, debt interest represented 17.9% of total government revenues and donations—over $7.19 billion—between January and September 2025. This accounts for 3.5% of El Salvador’s gross domestic product (GDP), estimated at $36.6 billion.

The draft of the 2026 General Budget anticipates $2.43 billion allocated for debt service next year, with $926.1 million in domestic obligations and $1.5074 billion in external ones.

A local economist commented, “El Salvador’s consistent debt payments reflect stronger fiscal management and a growing reputation for responsibility in international markets.”