Oct 19 (Reuters) - El Salvador's Congress has approved an $800 million sovereign bond issue to enable the government to pay off early debt the country contracted in 2003.
Congress unanimously approved the planned bond issue late on Thursday to pay back 20-year Eurobond debt issued by the government of ex-president Francisco Flores in 2003.
That debt was issued with a put clause which would enable investors to redeem their bonds in January 2013. Local regulations require the government to be able to show it has the requisite funds to pay off the debt three months ahead of time.
Congress also agreed that if the sum to be redeemed early is less than $400 million, it can use the remainder to pay back short-term floating debt known as LETES.
The poor Central American country has a debt of $13.3 billion, equivalent to roughly 55 percent of gross domestic product, according to official data.
Posted By: Eunice
Posted By: Eunice
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