Minister Alejandro Zelaya highlighted that there is an increasing interest in the bonds.
Last week the deadline that El Salvador had revealed for the launch of its Bitcoin Bond or Volcano Bond, with a value estimated at 1 billion US dollars, got met. But it did not happen. The media warned that no progress came to fruition, not even in its legal framework.
Now the announcement of the delay got made by the country’s own Finance Minister, Alejandro Zelaya, who blamed adverse market conditions that obstructed the project’s issue.
The official highlighted on the Salvadoran television program “Frente a Frente” that, although the issue got initially pointed to meet its release between March 15 and 20, the current situation led the administration to apply some changes in the date.
The official also highlighted in the program that they got prepared, but they are waiting for the right moment and the president to give the green light to proceed with the issue. He said that obviously, the president must get consulted on these matters because he is the leader. As a minister, he only shows him the scenarios where the leader could apply the procedures.
Forecast Success
According to Zelaya, the Bitcoin Bond caught the interest of those who desire to acquire it and will have a significant oversubscription that could approach USD 1.5 billion, and that could get conducted towards other financing requirements of the nation.
Zelaya explained that he would conduct the bond issue through the state thermal energy company La Geo. He said that if it gets issued by Geo or the Salvadoran State, it is always a State debt because La Geo is a state company.
The Bond is a Sovereign Guarantee
Likewise, the official maintains that Bitcoin can be the best option for Honduras in response to rumors that that country will also adopt the digital asset as legal tender. However, he said he would wait for the country’s official pronouncement to make a statement on the subject.
He considers it a good decision for a country like Honduras, with high inflation. Handling a robust digital asset such as Bitcoin is an alternative for countries to develop a greater economic flow.
The official acknowledged that it is not textual when he talks about two or three days to wait for a resolution. He stressed that the ideal dates to go on the market take effect during the first semester, so the emissions are between March and April, in May and June, but the market variants are different.
Later he ratified that after September, if a country goes out to the international or national market, it would fail because it is challenging to experience a raise unless there is a pre-foundation, as in the case of Bitcoin Bonds where there are already interested investors.
By: Jenson Nuñez
