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Before the debt matured, the swinging country El Salvador made an interesting offer: buy back a portion of these government bonds.
Statement yesterday (September 12), President Nayib Bukele said he wants to buy back foreign, sovereign debt that will mature in 2023 and 2025.
Specifically, the Central American country has set a purchase price of $910 for bonds maturing in 2023 and $540 for bonds maturing in 2025. The total value of these bonds is $800 million.
Remember in July, President Nayib Bukele sent to the National Assembly two bills presenting a plan to buy up his debts until 2025. This seems to be an attempt to reassure public opinion, against the speculation about the possible default that El Salvador is facing, as relations between this Central American country and traditional credit markets are becoming more strained, especially after El Salvador legalized BTC payments from last September.
Currently, El Salvador is holding 2,381 BTC, with an average price of 45,000 USD per BTC purchased and this investment has lost more than 58%.
See more: El Salvador is at risk of becoming the first country to default on Bitcoin
El Salvador’s $1 billion Bitcoin bond, which serves to build a “Bitcoin City,” is still “pending the next decision.”
Additionally, in August, Bitfinex and Tether CTO Paolo Ardoino, two names that have worked closely with El Salvador, revealed that government officials will approve the Bitcoin bond project in September. this.
President Bukele’s proposal will be reviewed from September 12 to September 20 by Deutsche Bank Securities and is expected to give results on September 22.
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