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Currently, there are no favorable conditions for the placement by El Salvador of bitcoin bonds for $ 1 billion, this was stated by the Country’s Minister of Finance Alejandro Zelaya, writes The Block.
El Salvador planned to issue the first bitcoin bonds for $ 1 billion by March 15-20. In case of success, the authorities were ready to conduct an additional issue of $ 500 million.
On March 22, the Ministry of Finance of El Salvador postponed the release due to the deterioration of the conjuncture and the need to finalize the legislation.
Economists fear the country’s default in January 2023, when it will have to repay bonds in fiat in the amount of $ 800 million.
Ricardo Castaneda, an economist at the Central American Institute for Financial Studies (ICEFI), estimated El Salvador’s need for liquidity until 2024 at $ 3 billion.
Zelaya, during an address to citizens, reported on the ongoing negotiations with the IMF.
The Minister of Finance also informed that the authorities sold part of the purchased bitcoins to finance the hospital for pets. The government received the necessary $ 4 million for these purposes “as a result of the growth of the first cryptocurrency.” The official stressed that the department does not sell accumulated coins.
Recall, on May 9, El Salvador purchased 500 BTC at an average price of ~ $ 30,744, bringing the volume of its reserves to 2301 BTC.
Earlier, the IMF expressed concerns about the risks associated with el Salvador’s bitcoin bonds. The organization has repeatedly called on the state to abandon the first cryptocurrency as a means of payment.
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