San Salvador, March 18 (EFE) .- El Salvador was selected this Friday by the Treasury or Finance Ministers of Central America, Panama and the Dominican Republic (Cosefin) to host a “regional debt market”, according to the Finance Minister. this country, Alejandro Zelaya.
“The resolution has been adopted that El Salvador will host the regional debt market” and “is a project financially backed by the Central Bank for Economic Integration (CABEI),” Minister Zelaya said at a press conference.
He also said, without going into detail, that planning for the project began “back in the 2000s.”
Zelaya asserted that “we are essentially going to be a stock exchange” in which the countries of the region “will be able to issue their public debt.”
“This includes the integration of all Central American exchanges” and CABEI will have $ 150 million to promote the project, which will not be invested exclusively in El Salvador, ”he said.
For Zelaya, the creation of this “regional securities market” allows “the location of the region with its multilateral partners.”
Dante Mossi, president of CABEI, said that Korea has “donated funds” to this project, without specifying whether the 150 million dollars were sponsored by the Government of that country.
He also said that next week the mission will be scheduled to “start this project” and define operation data that will have “the best rates.”
According to CABEI, the benefits of this project “include the ability to attract and mobilize more capital to the region, reduce operating costs and optimize a platform of transactional systems, including custody and settlement, as well as a better view of the region’s risk ”.
This announcement comes more than a month after risk measurement agency Fitch Ratings downgraded El Salvador’s long-term credit rating – Issuer’s Default Rating (IDR) – and cited reasons for the “uncertainty” about reaching an agreement with the International Monetary Fund (IMF) has adopted bitcoin.
Fitch said in a bulletin that the foreign currency rating of “CCC” had been raised from “B-” previously.
The entity recalled that “the government has been in extensive talks with the IMF for almost a year on a potential $ 1,300 million program over three years”, but “there are important differences between the two parties in many key areas”.
He stated that “an agreement would help cover the Government’s funding shortfall and is likely to release other multilateral loans”. EFE
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