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42% of public debt will mature in the next decade

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According to Ministry of Finance statistics, over the next 10 years, the government of El Salvador will have to pay 42% of its current outstanding non-financial public sector (SPNF) debt. finance.

Republic President Naive Bukele confirmed Monday that El Salvador has completed the payment of $800 million in bonds that matured on January 24. , the government rejected this possibility and assured that the money was guaranteed.

After this expiry, El Salvador has several commitments to face amid several warnings about a global economic slowdown in the coming years that will affect the local economy.

SPNF’s outstanding debt stands at $24,102.7 million as of November, equivalent to 75.8% of the country’s estimated gross domestic product (GDP) in 2022. This amount includes all commitments of the central government and its non-financial institutions, as well as liabilities derived from pension schemes contracted either from bonds in the international market, issuance in the domestic market, or from multilateral loans.

Balances as of November increased by $838.9 million year-over-year, up 3.6% from the amount registered in the same month in 2021.

Of the total amount, 22% must be paid in 1 to 5 years and 20% in 6 to 10 years. 40% over the next 10 years and 18% over the next 20 years.

DEMs

DEMs

what do i have to pay?

One of the most pressing commitments is short-term debt. It corresponds to the issuance of Treasury letters and certificates known as Letes and Cetes, the main characteristic of which is that their maturity does not exceed 365 days.

The Treasury Department reports that the balance on Letes, known as the government credit card, stood at $1.3166 billion as of November last year. Meanwhile, Cetes made him $1,313.5 million.

This means that the government must pay these commitments within the next 12 months, but usually rolls over, or issues additional debt to pay maturity. The main buyers are banks and pension fund administrators (AFPs).

Of the nine Eurobonds issued, the government plans to issue four. The first, dated January 30, 2025, originally issued him for $800 million, but after last year’s early-buying operation, the outstanding balance stands at $367.5 million.

The second maturity is scheduled for January 18, 2027, also for $800 million, and the third maturity is February 28, 2029 for $601.1 million. Finally, on April 10, 2032, he is scheduled to pay $500 million.

3 facts you should know

1.- Type of creditor

55% of SPNF debt is in the hands of investors (bonds), 35.5% is multilateral, 2.22% is bilateral, 6.9% is BCR and 0.4% is other.

2.- Fees
38% of the debt was contracted at interest rates of 6% to 8% and 27% was contracted at interest rates of 3% to 6%. 17% pay less than 3% and 9% pay up to 9%.

3.- Weight
SPNF balances stood at $24,102.7 million as of November, of which $6,089.2 million corresponded to pension plan commitments.

Source: Diario.Elmundo

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