Fitch upgrades El Salvador's credit rating, new incentive law for startups passed
The international credit rating agency Fitch Ratings has upgraded El Salvador's credit rating from CC to CC+ due to the government's timely payment of interest on its 2023 bonds and successful debt repurchase operations, significantly reducing the probability of default.
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Bukele's Call, Fitch Listens
Fitch had downgraded El Salvador's Issuer Default Rating (IDR) and debt rating last year, citing the country's adoption of Bitcoin as limiting its market access and impeding its ability to fund debt repayment.
According to a report by Forbes, El Salvador successfully paid $647 million in bond principal and interest in January this year, reducing the 2025 debt from $800 million to $348 million. With increased financial liquidity, Fitch decided to upgrade El Salvador's credit rating.
El Salvador President Nayib Bukele had expressed frustration on social media last year, feeling that mainstream media only criticizes and remains silent when El Salvador successfully repays its debt.
Now, he is happily promoting the news of the rating upgrade and claims that the rating will definitely be upgraded again when El Salvador announces a budget surplus for 2024!
The FIAT guys at @FitchRatings just UPGRADED El Salvador’s credit rating 3 positions in a single day 🤯
Of course they are just trying to adjust to reality, which is even better.
Can’t wait for them to upgrade it even more, once we announce our budget SURPLUS for 2024 😎 https://t.co/OegNYKBOYO
— Nayib Bukele (@nayibbukele) May 5, 2023
Bukele's Call, Fitch Listens: "Bitcoin Did Not Harm the Country" - Salvadoran President Pays Off $800 Million Debt, Questions Why Media Didn't Report
El Salvador Cancels Startup Taxes to Attract More Investment
El Salvador President Nayib Bukele submitted the Innovation and Technology Manufacturing Incentives Act to Congress in early April, aiming to eliminate all taxes on technological startups such as software coding, application and artificial intelligence development, computing and communication hardware manufacturing, including income, property, capital gains, and import duties, in order to attract more startup investments.
Recently, Nayib Bukele also tweeted that the Startup Incentives Act has been officially passed.
I’ve just signed into law, the INNOVATION AND TECHNOLOGY MANUFACTURING INCENTIVES ACT, that eliminates all taxes (income, property, capital gains and import tariffs) on technology innovations, software and app programming, AI, computer and communications hardware manufacturing. pic.twitter.com/rZtGzPgVzW
— Nayib Bukele (@nayibbukele) May 4, 2023