pull down to refresh
do you know how much they’re subsidizing their oil?
i recall seeing a while back that if you pay with chivo you get a discount on gas prices at the pump, is this the subsidy you’re referring to or something else?
+1 for someone who can share detailed financial data on El Salvador
Debt expiry jan 2023 $800M, total reserves $3,4B. The rest of the debt (future years) is about $17B-20B. The main problem is the debt/gdp which is now about 90%, but unlike the US (debt/gdp at 127%), El Salvador cannot print its main currency (dollars). So that 90% number is not so bad if you are the US, EU, JP or UK, but it's terrible if your currency is weak, or if you have a strong currency but you don't have control over it.
https://www.nasdaq.com/articles/will-el-salvador-default-on-its-sovereign-debt-in-2023
https://tradingeconomics.com/el-salvador/external-debt
https://tradingeconomics.com/united-states/government-debt-to-gdp
In the distant future, I can see them using gains from their Bitcoin holdings to buy back their debt and even pay off their debt, but with them currently subsidizing oil prices in their country I think their country is obviously making poor financial decisions.
I'd love a more detailed analysis of El Salvador's finances, how funding certain things means a certain return on investment things like that though.
I definitely don't think they have the finances to buy their debt right now, if they did, they wouldn't need debt to finance their country in the first place.