Tuesday, 21 September 2021 14:04

El Salvador's Bonds continue their bad streak

Written by Dinero Staff

For two consecutive weeks, the prices of El Salvador's Bonds have been registering strong drops in their prices.

This monday morning, Bonds maturing in 2035 registered a strong fall again, as well as the 2029 bonds.

Experts in the matter assure that this is due to the most recent news in economic matters in El Salvador, such as the entry into force of the Bitcoin Law, the expectation of an agreement with the International Monetary Fund (IMF), the announcement of the reforms to the Constitution of the Republic and the recent movements in the subject of the salvadoran judicial system, has caused for example that the 2035 Bonds went from US$84 to US$72.57 since september 7; this until 9am this monday.

The 2029 Bonds have gone from US$89 to US$82 in 15 days.

The former president of the Banco Central de Reserva (BCR), Carlos Acevedo, stated in an interview that he doubts that the agreement with the IMF will be reached at least soon, since he said that the country's relations with the United States have not been the best in the last days, and being the North American nation one of the most important voices of the Institution, it could be far from being achieved.

The Senior Economist of the Instituto Centroamericano de Estudios Fiscales (ICEFI) for El Salvador, Ricardo Castaneda, indicated that the Bond 2035 in April 2021 was at US$106.9, but today it is at US$72.57, only this day it experienced a 4.43% drop.