Nayib Bukele, the president of El Salvador, revealed via Twitter that the Central American country had managed to repay its $800 million in bond debt plus inherent interest. He also pointed to the lack of media coverage of the transaction, adding that these same media were nevertheless inclined to vigorously criticize El Salvador’s financial stability.
El Salvador manages to repay its debts
On Twitter, President of El Salvador Nayib Bukele announced that his government had repaid $800 million in bond debt maturing on the same day, with inherent interest.
In the same tweet, Nayib Bukele expressed his regrets about the lack of media coverage of this news to the extent that these same media, which he calls liars, wrote ” hundreds of items » calling into question the financial stability of the country because of its adoption of Bitcoin (BTC) in September 2021.
In the past year, almost every legacy international news outlet said that because of our “#Bitcoin bet”, El Salvador was going to default on its debt by January 2023 (since we had an 800 million dollar bond maturing today).
Literally, hundreds of articles https://t.co/rEiK7K13U4
—Nayib Bukele (@nayibbukele) January 24, 2023
“Over the past year, almost every mainstream international media has said that because of our ‘bitcoin gamble’, El Salvador will default on its debt by January 2023 (since we have a debt obligation). $800 million maturing today). Literally hundreds of articles. »
The president of El Salvador particularly attacked the New York Times, which notably headlined “El Salvador’s big bet on bitcoin does not pay off”:
“Whole pages in the New York Times and everything else, creating the narrative that El Salvador was broke and going to default. I denounced them at the time, but of course, who was going to believe us and not all the international media and their “economic geniuses”? »
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Media historically hostile to El Salvador
On September 15, the international financial rating agency Fitch Ratings downgraded El Salvador from “CCC” to “CC”, which reflects a liquidity situation considered disastrous. At that time, the agency said that El Salvador absolutely had to settle these 800 million dollars of bond debt to get out of it, which is now done.
A few months before, more precisely in July 2022, Nayib Bukele affirmed that the country had ample liquidity to meet its needs:
“Contrary to what the media has been saying all this time, El Salvador has the liquidity to not only pay all of its commitments when they are due, but also to pre-purchase all of its own debt (until 2025). »
According to available data, El Salvador currently has 2,381 BTC, which equates to approximately $53.6 million at current market price. Although the adoption of Bitcoin within the country is not necessarily unanimous, President Nayib Bukele nevertheless enjoys significant support from the population.
The latter had notably been elected concerning his fundamentally anti-crime conservative program in previous elections. A program that seems to have borne fruit, the president of El Salvador being supported by 85% of the population according to a poll by the independent institute CID Gallup.
👉 Related – El Salvador plans government bonds backed by Bitcoin (BTC)
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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