El Salvador repaid its $800 million bond despite accepting Bitcoin

Must read

The government of El Salvador returned its $800 million bond together with interest on the day it was due to maturity, according to President Nayib Bukele.

Despite the dismal predictions that the country will face financial difficulties as a result of its ventures into bitcoin, the bond has been settled.

We’ve already paid in full
A prominent bitcoin advocate from El Salvador made the announcement on Twitter and expressed sadness that the majority of global media sources had not done the same. They were also among the first to express concerns about the nation’s ability to pay back the $800 million bond that was due on January 23.

He particularly cited a July 2017 article in The New York Times that suggested El Salvador’s move to buy bitcoin on a macroeconomic level may undermine its financial system and prevent it from fulfilling its debt. Bukele went on to say that the bond was resolved without the need for a contract with the IMF (IMF).

El Salvador was commended by Changpeng Zhao (CZ), the CEO of Binance, the largest cryptocurrency exchange in the world, for completing its debt commitments.

Alejandro Zelaya, the country’s minister of finance, also acknowledged the large bond payment:

“Unfortunately, due to the misinformation campaign of some national and international media, we declare that we have finished paying the $800 million principal and interest on the 2023 bond on this day.”

El Salvador was commended by Changpeng Zhao (CZ), the CEO of Binance, the largest cryptocurrency exchange in the world, for completing its debt commitments.

Alejandro Zelaya, the country’s minister of finance, also acknowledged the large bond payment:

“Unfortunately, due to the misinformation campaign of some national and international media, we declare that we have finished paying the $800 million principal and interest on the 2023 bond on this day.”

According to reports from Reuters, the government just paid $604.1 million in principal and $23.4 million in interest, and it plans to complete two other agreements in 2022.

El Salvador: the Land of Bitcoin

El Salvador legalised bitcoin in September 2021, and even throughout the protracted down market, its government has remained supportive.

El Salvador has also taken advantage of the difficult macroeconomic environment to buy more of the virtual currency. The most recent data indicates that it possesses 2,381 BTC, but since President Bukele promised that the government will acquire one bitcoin every day starting in mid-November, the amount may be greater. No information is available, though, on whether the shopping binge actually occurs.

The country is presently sitting on huge paper losses as a result of the decline in the bitcoin market. Over the years, El Salvador spent more than $103 million accumulating its stockpile, which is now worth roughly $2 times less.

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Latest article