Sovereign haircuts / SLV
El Salvador
6 concluded restructurings, between 1860 and 1946. The earliest default they settle began in 1828. The worst cost creditors 83.6% of the present value of their claim, in 1946. The longest gap between a default and its settlement was 32 years.
Every restructuring
Two measures of the same deals, never combined. The present-value haircut discounts what creditors got against what they were owed; the face-value reduction counts only principal written off.
| Default | Settled | Years to settle | Present-value haircut | Face-value reduction | Debt treated (2020 $) | Source |
|---|---|---|---|---|---|---|
| 1828 | 1860 | 32 | 68.5% | 65.0% | $8M | Meyer, Reinhart and Trebesch (2022) |
| 1899 | 1899 | 0 | 25.9% | 0.0% | $95M | Meyer, Reinhart and Trebesch (2022) |
| 1921 | 1923 | 2 | 12.0% | 0.0% | $52M | Meyer, Reinhart and Trebesch (2022) |
| 1932 | 1932 | 0 | 29.2% | 0.0% | $246M | Meyer, Reinhart and Trebesch (2022) |
| 1935 | 1936 | 1 | 61.8% | 25.0% | $269M | Meyer, Reinhart and Trebesch (2022) |
| 1938 | 1946 | 8 | 83.6% | 29.4% | $117M | Meyer, Reinhart and Trebesch (2022) |
Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Debt treated is the amount restructured, deflated to constant 2020 US dollars in the source file. A negative haircut means the new instruments were worth more than the old claim. Methodology
Default spells
| Spell | From | To | Years | Restructurings |
|---|---|---|---|---|
| SLV_1828-1860 | 1828 | 1860 | 33 | 1 |
| SLV_1899-1899 | 1899 | 1899 | 1 | 1 |
| SLV_1921-1923 | 1921 | 1923 | 3 | 1 |
| SLV_1932-1932 | 1932 | 1932 | 1 | 1 |
| SLV_1935-1946 | 1935 | 1946 | 12 | 2 |
Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Duration counts both endpoints. The spells table also carries a cumulative-haircut column; it is not published here because it does not reconcile with the per-episode haircuts, see the methodology. Methodology
Debt still in default
The Bank of Canada-Bank of England default database records no debt in default for El Salvador in its latest year.
Source: Bank of Canada-Bank of England Sovereign Default Database (CRAG) Bank of Canada terms (attribution). Includes domestic arrears, so it is not comparable with the debt-treated column above. Methodology