El Salvador: Increase in Costs for Raising Funds Abroad

The interest rate rise in the US and the perceived risk of the Salvadoran economy have taken their toll on foreign debt bonds, whose yields have risen by about 2% in recent weeks.

This increase in yield of debt securities traded on the international market will be reflected in the forthcoming issues made by the government, which, according to economic analyst Mauricio Choussy, "... 'will no longer be sold for seven percent or six point five, which was the levels achieved previously, but rather will go for a higher interest rate, at eight percent. '"

Elsalvador.com reports that "... The president of the BCR added -in a face to face interview with TCS- that the bulk of the current debt held by the Salvadoran State was not impacted by the rise in interest rates internationally, "... but future issues will be more expensive.

Source: elsalvador.com