El Salvador’s leaders believe the right time to issue the highly anticipated bitcoin bonds has not yet come, the country’s Finance Minister Alejandro Zelaya said on the national television news show on June 1.
The $1 billion bond was originally scheduled to be issued as early as March 15 to March 20. However, on March 22, Zelaya explained that the country was still waiting for the right time to issue them for various reasons, including military events around the world. At the time, the government had yet to finalize legislation regulating digital assets.
Meanwhile, economists have expressed concerns about the country’s ability to raise funds to cover its future financial obligations, including $800 million in bonds that expire in January.
And there is no guarantee at this point that the country will have that money, commented Ricardo Castaneda, an economist at the Central American Institute for Financial Studies.
He estimated that given the gap between revenues and expenditures through 2024, the country needs to find about $3 billion.
In the interview, Zelaya also said negotiations between El Salvador and the International Monetary Fund are ongoing and progress is expected in the coming weeks.
Analysts have again started to discuss El Salvador after the price drop of cryptocurrencies, as they believe the country has lost more than $ 35 million on its investments. As a reminder, El Salvador bought 500 more bitcoins during the May 9 dump, bringing the total amount of government purchases to 2,301 BTC.
At the moment we are not selling the previously purchased cryptocurrency,” Zelaya dispelled economists’ doubts.