El Salvador’s Vice President Felix Ulloa said that the nation received an offer from China to buy all of its debt whilst also noting that they ” need to tread carefully”. He did not reveal further details on how the transaction might be conducted. However, Bloomberg notes that it is possible that China would offer El Salvador some type of financing so that the Central American nation could buy back its bonds. El Salvador had already bought back some of its bonds due 2023 and 2025 and is planning another round of buybacks in January where it has $667mn in bond payments due. Overall, analysts note that the buyback is an effort to avoid default on its dollar debts but that it would require external financing to prevent one from happening.

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