El Salvador Approves $1.5 Billion Debt Issuance to Balance National Budget

El Salvador's Congress has approved a $1.5 billion debt issuance to finance its credit portfolio and general budget. The move aims to improve external financing conditions and balance the nation's finances. Lawmakers previously approved a $1 billion issuance for bond buybacks earlier this year.

El Salvador's Congress on Wednesday signed off on a $1.5 billion debt issuance to finance its credit portfolio and the Central American nation's general budget.

The issuance, approved by 57 lawmakers out of the 60 who voted, could be made on domestic or international markets. The funds raised will go toward paying off debts, issued under previous administrations, that are set to mature. The proposal's passage is meant to "improve the public debt portfolio," said ruling party lawmaker William Soriano. "It is important to carry out (operations) that improve external financing conditions and contribute to the balancing of the state's finances."

In February, lawmakers gave the rubber stamp to a $1 billion debt issuance, of which nearly $487 million went to bond buybacks.

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