President Of El Salvador Proposes To Buy Back Gov Bonds

El Salvador’s president wants to buy back $1.6 billion in sovereign debt as the country’s finances become increasingly strained.

In a July 26 post, President Nayib Bukele said he sent two bills to the National Assembly to authorize the financing of government bond purchases. He further shared that the bond offering, which is completely transparent, open, and voluntary, will begin six weeks at market prices.

Today we are sending 2 bills to Congress to ensure that we have the available funds to make a transparent, public and voluntary purchase offer to all the holders of Salvadoran sovereign debt bonds from 2023 to 2025 at whatever the market price is at the time of each transaction.

— Nayib Bukele (@nayibbukele) July 26, 2022

This can be seen as a move to reassure the public opinion of President Nayib Bukele when he has “bet” to invest in Bitcoin quite a lot in the past time. At press time, El Salvador is holding 2,381 BTC with an average purchase price of $45,000 and recording a loss of 48.52% or $52 million.

Besides, El Salvador’s finance minister, Alejandro Zelaya, said that the President’s offer was a good sign of the country’s liquidity and proof that El Salvador wants to continue to be a member of the traditional financial system.

The skepticism raised by Mr.James Bosworth is based on the argument after the President promised investors a Bitcoin City powered by volcanoes and bonds backed by BTC, all so far.