210 sats \ 2 replies \ @nerd2ninja 26 Jul 2022 \ on: El Salvador Plans To Buy Back It’s Own Debt bitcoin
In the distant future, I can see them using gains from their Bitcoin holdings to buy back their debt and even pay off their debt, but with them currently subsidizing oil prices in their country I think their country is obviously making poor financial decisions.
I'd love a more detailed analysis of El Salvador's finances, how funding certain things means a certain return on investment things like that though.
I definitely don't think they have the finances to buy their debt right now, if they did, they wouldn't need debt to finance their country in the first place.
do you know how much they’re subsidizing their oil?
i recall seeing a while back that if you pay with chivo you get a discount on gas prices at the pump, is this the subsidy you’re referring to or something else?
+1 for someone who can share detailed financial data on El Salvador
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Debt expiry jan 2023 $800M, total reserves $3,4B. The rest of the debt (future years) is about $17B-20B. The main problem is the debt/gdp which is now about 90%, but unlike the US (debt/gdp at 127%), El Salvador cannot print its main currency (dollars).
So that 90% number is not so bad if you are the US, EU, JP or UK, but it's terrible if your currency is weak, or if you have a strong currency but you don't have control over it.
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