El Salvador has Only Small Margin for Borrowing

The government has already reached 72% of the maximum amount of issuance of Treasury Bills that is permitted by law, and it only has $370 million available to borrow this year.

Tuesday, September 13, 2016

Given the critical fiscal situation, the Sanchez Ceren administration is insisting in the Legislature on the approval of a bill to issue another $1.2 billion in debt. According to the government, several commitments can not meet unless these funds are available. For the remainder of the year the only remaining possibility is the issuance of $370 million in short-term debt in the local market.

"... According to statistics from the National Stock Exchange, available on its website, with the issue on September 9 for $88 million, the historical issuances together add up to $956,878,000, 72% of the limit."

Elmundo.sv reports that the government "... now, only has $370,465,619 available with which to acquire more short - term debt. The Treasury department today made its thirty-fifth issue of the year, and will be offering $20 million in Treasury bills on the stock market, meaning that the margin is expected to shrink even more."

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