A. M. 
The Secretaría del Consejo Monetario Centroamericano (SECMCA) highlighted the efforts of the Government of El Salvador to strengthen the fiscal consolidation process in the medium and long term. Through strategies aimed at increasing tax revenues, containment of current spending and responsible management of liabilities, the country seeks to achieve a progressive reduction of public debt.
ACTIONS TAKEN
According to SECMCA’s regional report, as part of these actions, in april a repurchase of debt securities was carried out for an amount of US$946 million, prioritizing bonds maturing in 2025, 2027 and 2029, whose outstanding value amounted to US$1,749 million. According to the report, all offers for the 2025 bonds were accepted, which allowed the repurchase of 71% of these bonds, as well as 21% of the 2027 bonds and 12% of the 2029 bonds, thus reducing the short-term financing risk.
DEBT REPURCHASE
On october 16, a new financial operation was completed that included the repurchase of bonds for US$1.031 billion, in which the government was supported by the International Development Finance Corporation of the United States and the Development Bank of Latin America and the Caribbean (CAF). This strategy resulted in savings of approximately US$352 million, a move welcomed by international markets.
The international community has been highly appreciative of this approach, highlighting the use of financial instruments to support high-impact environmental projects. This strategic approach has been considered a model for efficient public debt management and the promotion of sustainable development.
With these actions, El Salvador is moving towards stabilizing its economy, strengthening investor confidence and reducing its exposure to financial risks in the near future.
