In less than four months the government of Nayib Bukele has already added a short-term debt of $ 604 million, through Treasury Bills (letas), after the placement it made yesterday of $ 46.3 million.
The Executive’s claim was that in the stock market they would lend him $ 107,220,700, but at the end of the day what he got was $ 46,300,100, according to information on the stock exchange portal of El Salvador.
This loan which has to be repaid within 360 days was placed at a rate of 7.3%.
The latter placement is in addition to those already made in the first three months of the year, the sum amounted to $ 557,700,000.
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According to data from the Stock Exchange, between March 2 and 25, the Treasury had made four placements of letters and one more of Treasury Certificates (Cetes) totaling $ 388,346,000.
In total the Government has made 8 placements between January and March, which keep short-term debt at the limit, as for this year the Legislative Assembly has authorized the Bukele government a debt limit short-term that does not exceed 25% of current revenue in 2021.
This type of debt through letas and Cetes does not require the endorsement of the Legislature and resembles a credit card for the government, which has a limit of $ 1,424,126,968 million by 2021.
Because of this, the government has had to pay in installments to repay the loans. For example, on March 23 the Government lent $ 115 million and a day earlier had made a payment of $ 125 million; then on March 24 he repaid another $ 125 million and on March 25 borrowed $ 136 million.
For public finances last month was one of the most critical in the first quarter of the year, as it had to pay $ 328 million. And while this month he only has to pay $ 46 million, this Tuesday he already borrowed $ 46.3 million in letters.
Then in the third quarter of this year comes another more difficult month for the state coffers, as the Treasury will have to pay in September $ 94 million in letters and will also have to settle $ 645.8 million of Cetes that go be lent on September 21, 2020.
Little room to lend
According to data from the Central Reserve Bank (BCR), as of February this year the government has accumulated a debt of $ 1,323.70 million in letters.
This sum implies an increase of 26.08% in short-term debt, since in February 2020 the debt in Treasury Bills was $ 1,049.86 million.
The level of debt repayable in one-year installments leaves the government with little room to acquire more credit. In fact, yesterday’s placement reflects that in the stock market they did not agree to lend him everything that the Executive required.
In total, the Treasury has to pay $ 1,724.5 million this year for Treasury Bills and Treasury Certificates that have different maturities throughout this year.