End of black rumors? The President of El Salvador, Nayib Bukele, announced shock measures concerning sovereign debt, a way of silencing the whistle to the detractors of the Bitcoin (BTC) who never stop singing, like a bird of bad omen, the imminent bankruptcy of the country.
A guarantee to silence critics
The shepherd’s answer to the shepherdess: the government of El Salvador apparently wants to shut down the media, institutions, and all natural and legal persons, who seem to take pleasure in foreseeing a future default of the country.
To beat back their cackle, on July 26, the President of El Salvador sent two bills in Congress, the purpose of which is to guarantee the redemption of all bonds sovereign debt, which mature in 2023 and 2025. The total amount of bonds which mature in 2023 and 2025, each amount to $800 million.
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A well-crafted takeover project
To dispel any doubt as to the country’s ability to honor its commitments, a provisional schedule for the redemption of bonds has been announced. The operation should start in six weeksonce the appropriate administrative formalities have been completed.
Driving the point home, Nayib Bukele assures that El Salvador has the liquidity required to redeem the bonds at any time, or even in advance, and the country will pay for each bond at the market price at the time of transactions.
Given that Nayib Bukele’s party holds 64 of the 84 votes in Congress, the realization of this bond buyback project should therefore not come up against a legislative veto.
Bitcoin did not ruin El Salvador
These announcements by the President of El Salvador are a response to criticism from the International Monetary Fund and its supporters, who disapprove of the country’s decision to make Bitcoin legal tender.
El Salvador’s opponents in this field are rejoicing in the crypto winter, with Bitcoin falling back below $20,000 last June, and fails to retake essential bullish support for the time being for a sustainable recovery. Ours remain masters of the markets and give voice to the “we said so” combined with other accusatory expressions.
These criticisms unsurprisingly intentionally disregard Bitcoin’s potential capacity to rise again in the medium and long term, and thus allow El Salvador to generate a substantial profit on its holdings, that the country continues to HODler despite the tremors.
People who hoped or prayed that El Salvador would default, after the country signed its partial emancipation from the traditional monetary system by legalizing Bitcoin, so may have to pray even harder to see their wish come true.
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