The bitcoin (BTC) bet has backfired somewhat for a small country, as it is the best cryptocurrency deal ever with a 70% discount over the maximum. At a time when the Latin American nation is struggling with its debt, Morgan Stanley called for the purchase of battered Eurobonds.

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Simon Waver, global head of emerging markets sovereign lending strategy at Morgan Stanley, told investors on Tuesday that El Salvador’s bonds are being overly penalized by market conditions despite the country’s financial performance being better than many of its peers. informed Bloomberg. The note to investors stated:

“Markets are clearly banking on the high probability of an autarky scenario in which El Salvador defaults but no restructuring takes place.”

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Waver noted that the country’s debt should not trade below 43.7 cents on the dollar even in the event of a default, but also acknowledged that this level is impossible to reach in current market conditions due to tightening global liquidity.

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El Salvador Delays Bitcoin Bond Issue Until September: Report

A note released on Tuesday said El Salvador should have no problems paying off debt over the next 12 months due to a primary surplus and has a shorter maturity than other troubled countries such as Argentina, Egypt and Ukraine. .

El Salvador made BTC legal tender last September and everything seemed to be working great for the small country until the bull market peaked. The country has bought nearly $56 million worth of BTC since September and has even used last year’s profits to build schools and hospitals. However, the country lost a significant portion of its investment when the bear market began.

There have been discussions around issuing a Bitcoin volcanic bond after a $1 billion bailout request from the International Monetary Fund (IMF) fell through. However, the bond that was hyped alongside Bitcoin City has faced numerous delays with no specific launch date.