Recent news summary
Here is a summary of some of what has been happening in El Salvador in the first half of May. World bond markets fear El Salvador will default on its debt. The discount on El Salvador’s foreign debt surged to record levels in recent days as world investors see it as increasingly likely that El Salvador will default in the near future. The risk component of a bond discount reflects the willingness of a bond investor to sell the bond on the secondary market for a discount from its face value because of a concern the government issuer will not honor its promise to pay the face value. With respect to El Salvador, investors see that risk as one of the highest in the world currently. As each week passes without El Salvador reaching agreements with international lending institutions to refinance its debt, that risk increases. As Bitcoin price swoons, Bukele keeps doubling down with country’s cash. The price of Bitcoin dropped below $30,000 USD this week, having dropped 50% in the