2024-09-18 15:09:37
In the framework of the commemoration of the 203 years of independence of Central America, the President of the Republic, Nayib Bukele, announced that for the first time in decades, the Executive Branch will present a proposal for the General Budget of the nation for 2025, fully funded.
This announcement revolutionized emerging markets, thus increasing national bonds, according to the specialized economic magazine, Bloomberg, which in its article entitled “El Salvador bonds soar after Bukele signals Zero Deficit“, which details how the country, thanks to the measures implemented by the Salvadoran President, is positioned among the most attractive countries for foreign investment.
According to this media, “bonds maturing in 2035 reached their highest level since 2021, the best in emerging markets.” Meanwhile, “Bank of America raises the country’s debt rating to overweight.”
The article also highlights that El Salvador’s sovereign debt soared on Monday after President Nayib Bukele said the 2025 budget would not involve issuing new debt, signaling a fiscal austerity plan, a key step to unblocking a long-awaited program with the International Monetary Fund.
“Dollar notes rose across the curve, with those due in 2035 gaining 2.2 cents on the dollar to 80.5 cents, the highest level since 2021, according to indicative pricing data compiled by Bloomberg. The bond yield fell more than 40 basis points to 10.7%,” the media highlights.