El Salvador’s bonds are rebounding after the controversial bitcoin bill.

The crypto community is a big fan of El Salvador President Nayib Bukele, who is making Bitcoin an official currency of his nation. The bond market has started warming up, too. El Salvador’s bonds are rebounding from a rout that extended into junk early August as the country was downgraded deeper into junk, and concern mounted about the risks posed by the Bukele’s Bitcoin move and push to change the constitution. 

El Salvador’s bonds rebound. 

In the last two weeks, El Salvador’s bonds have returned 7.6%, more than the dollar-denominated debt of any other country besides Zambia, where the new president’s landslide victory bolstered speculation he can steer the country out of default. Still, the bonds have lost 12.8% since the last trading day of April, as the Latin American country struggles to reach a deal with the International Monetary Fund. Carlos de Sousa, an investor at Vontobel Asset Management in Zurich, said the nascent turnaround reflects how deeply the securities had fallen. 

El Salvador continues to get criticism over its bitcoin law. 

El Salvador’s President Bukele sowed concern among investors after his allies in Congress voted to fire five of the country’s top judges in May. He has also pushed to extend the presidential term to six years as part of a broad overhaul of the constitution. The perceived power-grab created a rift with the United States of America that cast doubt on whether El Salvador could secure a new agreement with the IMF, which also said the adoption of Bitcoin could bring new financial and regulatory risks. On July 30, Moody’s Investors Service downgraded El Salvador to seven steps below investment grade, citing controversial policies. Earlier, World Bank and other global financial regulators criticized El Salvador for adopting bitcoin.