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Story perspectives

El Salvador Faces Default Risk Amid Economic Turmoil

3/3/2025

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Story summary
  • El Salvador, led by President Nayib Bukele since 2019, risks default amid rising debt and fiscal deficits.
  • Diminished dollar reserves and sluggish GDP growth exacerbate economic challenges.
  • Ongoing negotiations with the IMF for financial assistance are currently stalled.
  • Bukele's confrontational approach towards the judiciary and media erodes public trust in his leadership.