What does Xi Jinping want? China plans to buy all of El Salvador’s external debt – El Financiero

China Offered to buy debt savior for help Refinance your external obligationsThe Vice President of El Salvador confirmed on Monday, November 7 Felix Uluwa.

El Salvador, from S&P Global Ratings rated CCC +seven degrees below investment grade, trying it Reorganize your foreign debt To avoid falling into default. Currently, she has around 670 million dollars The bonds mature on January 24.

“China has offered to buy all our debts, but we must tread carefullyThis is what Ulloa told Bloomberg on the sidelines of an event in Madrid.We will not sell to the first bidder, you have to see the terms‘, said Ulloa, when asked about a possible debt restructuring.

Central American country bonds due in 2023 and 2025 were repurchased with a Overview which closed in September. as I expected Launching a new offer to get the remaining debtwhich is priced at approx 90 cents on the dollaras early as this month.

However, Ulloa said the second public offering will take place in January, before the primary payment is due. He said the country had suspended the holding of so-called Special Drawing Rights, or reserve assets held by the International Monetary Fund, to fund buybacks.

“The Ministry of Finance and the Central Bank are preparing the conditions for the second buyback,” Ulloa said.

While El Salvador is likely to be able to avoid default in 2023“At our baseline, reserves will disappear if the government pushes the amortization of the 2025 Eurobonds,” Oxford Economics analysts Felipe Camargo and Lucila Bonilla wrote in a note last month.

El Salvador currently has the lowest risk rating in Central America from Moody’s, Standard & Poor’s and Fitch.