Salvadoran Finance Minister Alejandro Celaya said the country is still not ready to issue the previously announced Bitcoin-backed bonds. The reason is the international situation.
During interview on the Frente a Frente program, Alejandro Zelaya noted that the military operation in Ukraine still remains a threat to the cryptocurrency market, and could affect the price of bitcoin. There are also risks for the stock markets, so for now the authorities of El Salvador do not plan to launch bonds. Initially, the release was planned for the period from March 15 to March 20, but on March 22, Zelaya announced an indefinite postponement.
Economists also note that El Salvador may not have the funds to pay the yield on such bonds. In January next year, the country must pay $800 million in government bonds. According to Ricardo Castaneda, an economist at the Central American Financial Research Institute (ICEFI), the country needs to find $3 billion by 2024 to pay off its obligations.
Recall that in early May, the authorities of El Salvador bought another batch of 500 BTC at a price of $30,744 per coin. El Salvador now has about 2,301 BTC at its disposal.
Source: Bits
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