LatinNews Daily - 05 September 2023

In brief: El Salvador gov’t debt deal with banking association draws concern

* Claudia Ortiz, a national deputy for the Salvadorean opposition Vamos, has called for clarification regarding a new deal between the Nuevas Ideas (NI) government led by President Nayib Bukele and the Salvadorean banking association (Abansa). A press release published by the finance ministry on 4 September notes that that ministry has accepted a proposal made on 24 August by Abansa which has the objective of restructuring short-term debt, turning it into medium- and long-term debt, which would expire in two, three, five and seven years. The finance ministry said that it would have a “positive impact” on public finances, permitting a drop in the country’s public debt through programmed payments. Speaking to journalists, however, Ortiz complained that there was no information regarding the agreement, saying that the public had the right to know for example whether the changes would result in the State having to pay higher interest rates and also what the banks stood to gain from the deal.

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