CarlosPatrice Flynn, professor of global business and economics at Mount St. Mary’s University: “News of El Salvador avoiding default on an $800 million sovereign bond is notable following months of speculation. The payment is nontrivial for a nation that owes some $21 billion to global creditors. The IMF and other lenders are following developments closely, factoring in risks associated with El Salvador’s macroeconomic fragilities before considering new loans. El Salvador may opt for an easier way forward by taking advantage of being a partner on China’s new Silk Road. In 2019, President Xi invited President Bukele to Beijing for a state visit during which Xi lavished gifts, promises of infrastructure loans and an offer to join China’s One Belt One Road. El Salvador accepted and is in dialogue on next steps. We can envision China’s way forward based on…”
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Gene Kuleta
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IESA
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