25 October 2024

El Salvador agreed to US$1.03bn repurchasing of its external debt in an historic debt-for-nature swap.  JPMorgan Chase provided the special purchase entity with US$1bn political insurance via the US international development bank (DFC) and the Development Bank of Latin America and Caribbean (CAF) adding US$200m as a standby letter of credit. According to President Nayib Bukele, it is the largest debt conversion transaction of its kind to date. Under the agreement the El Salvador government will establish an entity to oversee the conservation, create a water resources data monitoring service and declare 75,000 hectares aquifer recharge by 2044.

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