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Despite Embracing Bitcoin, El Salvador Repaid its $800 Million Bond

El Salvador paid its $800 million bond plus interest, according to President Bukele and Finance Minister Zelaya.

El Salvador’s President, Nayib Bukele, disclosed that the country redeemed its $800 million bond plus interest on the same day it was due to maturity.

The bond was settled amid negative predictions that the country would face financial difficulties as a result of its bitcoin ventures.

El Salvador’s political leader, who is a strong supporter of bitcoin, revealed the news on Twitter, lamenting that most international media outlets failed to spread the word. At the same time, they were among the first to express concerns about the country’s ability to repay the $800 million bond that matured on January 23.

He especially referenced to The New York Times’ July 2017 assertion that El Salvador’s move to purchase bitcoin on a macroeconomic level could undermine its monetary network and prevent it from fulfilling its debt. Bukele went on to say that the bond was settled without the need for a contract with the International Monetary Fund (IMF).

Changpeng Zhao (CZ), CEO of Binance, the world’s largest crypto exchange, commended El Salvador on achieving its financial responsibilities.

Alejandro Zelaya, the country’s Finance Minister, also verified the multi-million bond payment:

“Unfortunately, due to the misleading effort of some national and international media, we announce that we have completed the payment of the 2023 bond for $800 million, plus interest, on this day.”

According to the presidency’s press office, the government recently paid $604.1 million plus interest of $23.4 million, and plans to complete two more transactions in 2022.

El Salvador legalised bitcoin in September 2021, and its government has remained supportive throughout the lengthy bear market.

El Salvador has also taken advantage of the country’s difficult macroeconomic position to buy more bitcoin. According to the most recent data, it has 2,381 BTC, but this figure could be greater because President Bukele promised in mid-November that the government would acquire one bitcoin each day. However, there is no word on whether the buying spree will take place as planned.

The country is currently sitting on enormous paper losses as a result of the bitcoin market’s decline. El Salvador spent more than $103 million over the years to acquire its hoard, which is now worth nearly twice as much.

 

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