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El Salvador bonds rise after announcement of fully funded 2025 budget

September 19, 2024
News

President Nayib Bukele’s announcement of the 2025 national budget, completely financed with own revenues, has generated an increase in investor confidence, which has boosted the value of Salvadoran bonds. This financial plan, to be presented at the end of September, was well received by the markets, highlighting the country’s ability to manage its resources without relying on external financing.

According to Bloomberg, Salvadoran bonds maturing in 2035 rose 2.2 cents, reaching 80.6 cents on the dollar, their highest value since 2021. This increase reflects a decrease in the risk perceived by investors and a greater appetite for the country’s debt securities.

Bank of America also noted that El Salvador’s debt is “overweight,” indicating that current ratings may not be aligned with the country’s financial situation. This scenario opens the possibility of strengthening relations with international financial institutions, such as the International Monetary Fund (IMF).

Source: Politica Stereo

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