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Morgan Stanley is willing to buy El Salvador bonds despite poor performance

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Morgan Stanley expressed its willingness to buy El Salvador’s bonds, despite the fact that they were among the worst this year, according to Bloomberg News. informed.

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El Salvador’s $7.7 billion Eurobonds perform poorly, despite performing better than similarly positioned countries, according to the report.

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Simon Waver, a bank executive, reportedly wrote that El Salvador’s bonds are “overpunished”.

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Waiver estimates that El Salvador’s debt should be valued at 43.7 cents against the dollar — an estimate that does not cover an $800 million debt due in January 2023 that is trading at 65 cents against the dollar.

Waiver warned that there was a possibility of a default by the country, but added that shrinking global liquidity could make that impossible.

According to Waiver, the country can still fulfill its obligations for another year without delinquent payments.

Meanwhile, on July 15, the Central American country’s 2027 bonds fell to 26.3 cents.

Bitcoin Rate El Salvador

El Salvador’s Bitcoin (BTC) bet is not going as planned as the country’s holding has shrunk 48% and is now worth $56 million, according to Bloomberg.

At the peak of the collapse of the Bloomberg crypto market informed that the country suffered an unrealized loss of $56 million.

El Salvador at present keeps Only 2380 BTC.

Salvadoran Finance Minister Alejandro Celaya downplayed the impact of the Bitcoin crash, saying the situation posed minimal financial risk to the country.

President Naib Bukele also remains a strong supporter of bitcoin. In a July 8 tweet, Bukele wrote that critics are “fearful” that “Bitcoin is inevitable.”

Meanwhile, July 14 Reuters report it emerged that the debtor country was still negotiating with the International Monetary Fund (IMF) for a $1.3 billion loan.

The IMF has consistently called on the Bukele-led government to reverse its decision to accept bitcoin as legal tender.

However, the Central African Republic followed the example of El Salvador to accept bitcoin, despite the alarm of international organizations.

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