El Salvador congress approves use of SDRs for early debt repayment

Talks with IMF stalled as country tackles $24 billion debt load

National Palace of El Salvador, San Salvador
National Palace of El Salvador, San Salvador

El Salvador’s legislature ordered the central bank to convert more than $360 million worth of IMF special drawing rights (SDRs) into dollars and transfer these to the finance ministry, as the country struggles to convince investors it will repay its debts.

The funds will be used to buy back sovereign bonds ahead of their 2023 and 2025 maturation dates. But many analysts warn the measure will have little effect given the high debt load and deep governance issues.

The legislature, in its July 26

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account