This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
El Salvador Reaches $1.4bn Loan Agreement with the IMF
December 19, 2024
El Salvador has reached a $1.4bn 40-month loan agreement with the IMF after four years of negotiations. This delay in the agreement was partly due to the country’s adoption of Bitcoin as legal tender. The program aims to improve the nation’s fiscal balance, reduce its debt-to-GDP ratio, and address short-term debt obligations. The IMF recognized the government’s progress in economic growth, inflation control, and fiscal management. President Nayib Bukele’s Bitcoin initiative in 2021 initially strained relations with the IMF, leading to credit downgrades and investor concerns. However, the deal includes key concessions, such as making Bitcoin acceptance voluntary for the private sector and scaling down the government’s involvement with the Chivo digital wallet. The government has also implemented measures like debt buybacks and pension restructuring improving investor confidence. Despite challenges, El Salvador has shown progress in managing its economy and debt, that includes new debt issuance and its successful the debt-for-nature swap contributing to fiscal stability.
Its dollar bonds traded stable with its 6.375% 2027s at 99.33, yielding 6.72%.
For more details, click here
Go back to Latest bond Market News
Related Posts:El Salvador’s Dollar Bonds Rally on Debt Swap Tender Offer
October 8, 2024
El Salvador Announces Tender Offer Results
October 14, 2024
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.