2023-08-25 19:41:28
The private banks of El Salvador have delivered a proposal to the Ministry of Finance on short-term debt management to contribute to the sustainability of the country’s finances.
Photo: Equilibrium newspaper.
San Salvador. The Salvadoran Banking Association (ABANSA) delivered on Thursday, August 24, to the Ministry of Finance (MH) a debt management proposal structured in terms of 2, 3, 5 and 7 years.
With this, the private organization seeks to contribute to the reduction of public debt levels in the short term and obtain a better maturity profile of El Salvador’s financial obligations, explained sources from the State Portfolio.
In other words, this proposal intends for the country to improve its debt profile, reduce the risk perceived by international markets and strengthen fiscal sustainability in the medium term.
ABANSA decided to take this step thanks to the substantial improvements in the country’s risk indicators –such as the EMBI of El Salvador– thanks to the early and punctual payment of the 2023 and 2025 Eurobonds, the strength of the post-pandemic financial system and the confidence that financial institutions have in the country.
For the Treasury authorities, this announcement represents a definitive endorsement of the solidity of the national financial system and its institutions, as well as a vote of confidence in the economic policies implemented by the Government of President Nayib Bukele.
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