El Salvador Proposes Bond Buyback Amid Bitcoin Surge And US Election Results

According to Odaily, El Salvador's President Nayib Bukele has proposed a third bond buyback this year, coinciding with a rise in Bitcoin prices and the recent US election results. The government announced on Tuesday its intention to repurchase a series of notes maturing between 2027 and 2034, with an outstanding principal amount exceeding $2.5 billion. The statement did not specify how the transaction would be financed. However, a source familiar with the matter indicated that the debt buyback would depend on new financing, the details of which have not yet been disclosed as they remain confidential. Since former President Donald Trump won the US presidential election last week, El Salvador's debt return rate has reached 4.7%, outperforming all emerging market countries except Ukraine. Investors have long believed that a second term for Trump would aid Bukele in securing support for loans from the International Monetary Fund. Katrina Butt, an economist at AllianceBernstein in New York, commented, "The market views El Salvador as a 'Trump trade,' with expectations that a closer personal relationship between Bukele and Trump will benefit El Salvador. They are unlikely to have enough cash for such a buyback and may need to enter the market to finance the transaction."