According to ChainCatcher news and Bloomberg reports, amid rising Bitcoin prices and the results of the U.S. election, El Salvador's President Nayib Bukele has proposed the repurchase of dollar bonds for the third time this year. According to a statement released on Tuesday, the government proposed to repurchase a series of notes maturing from 2027 to 2034. The total outstanding principal of these securities exceeds $2.5 billion.
The statement did not specify how the transaction would be paid for. But an informed source said that the debt buyback depends on new financing, the details of which have not yet been made public, as this information has not been disclosed. Data shows that since Trump won the U.S. 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 Trump's second term would help Bukele gain support for loans from the International Monetary Fund. New York Union Bank economist Katrina Butt said, 'The market sees El Salvador as a 'Trump deal,' and it is expected that a closer personal relationship between Bukele and Trump will benefit El Salvador, which is unlikely to have enough cash for such a buyback and may need to enter the market for financing the transaction.'