Authorized To The Executive In The Field Of Finance Organ, Issue Titles Values Of Credit Up To The Amount Of $152,000,000.00.

Original Language Title: AUTORÍZASE AL ÓRGANO EJECUTIVO EN EL RAMO DE HACIENDA, EMITIR TÍTULOS VALORES DE CRÉDITO HASTA POR LA SUMA $152,000,000.00.

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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR

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DECREE N ° 388

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I.-That the Organic Law of State Financial Administration establishes that it is the attribution of the Ministry of Finance, representing the State, to place

Titles Securities in capital markets, subject to prior authorization of the Legislative Assembly.

II.-That the Constitution of the Republic, establishes that the Executive Branch in the corresponding Ramo, is empowered to carry out financial operations of credit, oriented to generate those resources necessary to attend to urgent care

and unavoidable obligations that demand the population.

III.-That in recent years there has been a serious aggravation in the field of

criminality in the country and in the region, due to the progressive emergence of new forms of criminality, which are characterized by being a type The European Commission has been in the process of implementing the European Union's policy in the area of State institutions, which are carrying out joint actions

, with the aim of assuring the inhabitants of the Republic the enjoyment of their rights, combating in an integral way these new forms of criminality.

IV.- That in the present circumstances, it becomes indispensable to strengthen, in an integral, special and extraordinary way, the attention that must be given to the

coverage of citizen security, with measures aimed at guaranteeing the financing of these.

V.-That in reason of the above and on the basis of what is established in Art. 148 of the Constitution of the Republic, it is appropriate to authorize the Executive Body in the Ramo of Finance, to issue Titles of Credit.

BY TANTO,

in use of its Constitutional faculties and on the initiative of the President of the Republic, through Minister of Finance.

DECCRETA:

Art. 1.-Authorize the Executive Body in the Ramo de Hacienda, so that it issues securities

of Credit in Dollars of the United States of America up to the sum of HUNDRED AND FIFTY-TWO MILLION DOLLARS OF THE UNITED STATES OF AMERICA, (US$ 152,000,000.00) to be placed interchangeably in the National or International Market.

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Art. 2.-The funds obtained from the issuance of the Securities of Credit will be used to attend, the comprehensive financing, that is demanded for the appropriate and timely implementation of the

Extraordinary measures of Public Safety and other actions linked to the coverage of public security. These funds will be used as follows:

For the improvement and extension of the prison system, the amount of FORTY-THREE MILLION DOLLARS (USD 43,500,000.00), which must be used for the construction of three temporary seclusion centres; equipment of the

themselves; recruitment of staff for temporary centres; current expenditure of the three temporary recruitment centres; construction of isolation cells; purchase of pick-up and micro-buses for temporary and criminal centres with gang members; goods, equipment and infrastructure arrangements for

achieving greater security in criminal cases with gang members and their current spending; personnel for new penalties; defense and security material including ammunition and food.

For the strengthening of the National Civil Police, to put in place the various actions with an amount of FORTY-THREE MILLION SEVEN HUNDRED AND FIFTY THOUSAND DOLLARS FROM THE

UNITED STATES OF AMERICA (US$ 43,750,000.00), which must be used for equipment of the special reaction force of El Salvador's National Civilian Police and Armed Forces, night viewers, backpacks, layers, mattresses, cabins, and all types of airlifting; reconnaissance and aerial monitoring for special reaction force, including purchase, handling, and maintenance of drones; current expenses

for special forces of reaction of the National Civil Police and Armed Forces of El Salvador, such as, dry ration, maintenance of local and vehicles, fuel of vehicles and aviation and Ammunition among others; fund for family members of fallen police; reinforcement and equipment for more operativity

modernization and intelligence; armament renewal; accessory equipment, bulletproof vest, communications radios, rest conditions improvements, and intelligence reinforcement.

The Ministry of National Defense NINETEEN MILLION NINE HUNDRED AND FIFTY THOUSAND DOLLARS FROM THE UNITED STATES OF AMERICA (US$ 19,950,000.00), which must be used for the operation of 6,300 elements of the Salvadoran Armed Forces, funds for

operation and payment of 1,000 reservists from the Salvadoran Armed Forces.

Al Pension System of the Institute of Social Welfare of the Armed Forces an amount of THIRTY

AND SEVEN MILLION THREE HUNDRED THOUSAND DOLLARS FROM THE UNITED STATES OF AMERICA (US$ 37,300,000.00), which must be used for the payment of pensions.

For the Office of the Prosecutor General of the Republic, the amount of SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS FROM THE UNITED STATES OF AMERICA (US$7,500,000.00), which must be used for partial renovation of the vehicle fleet, technological applications, strengthening of tax offices and

salary levelling of staff.

Art. 3.-The Securities of Credit Securities, the issue of which is authorized in this Decree, will be issued

under the following conditions:

a) The performance of the Titles Credit Securities will be determined at the time of the transaction, according to the conditions of the financial market. Securities Titles

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Credit may have a discount or award, according to market practice;

(b) The nominal value and yields of the Securities of Credit Securities shall be exempt from all taxes, fees and contributions. The capital gain obtained by the purchase-sale of such securities will be subject to the tax treatment stipulated by

the relevant legislation; and,

c) The Securities of Credit Securities may be placed within a period of up to 30 years. years. The nominal

value that they represent, can be amortized by periodic quotas, by a single payment at the end of the term or at a preset date.

Art. 4.-The Central Reserve Bank of El Salvador will act as the Financial Agent of the Government and for this purpose, the Ministry of Finance will subscribe with the Bank, the respective Financial Agent Contract.

Art. 5.-The resources obtained from this Decree shall be non-transferable, and may not be used for other purposes, other than those established in this Decree; and must be

deposited in a special account which for this purpose create the Ministry of Finance in the General Administration of Treasury, in accordance with the provisions of Article 74 of the Organic Law on the Financial Administration of the State.

Art. 6.-For the placement of the Securities of Credit, the Ministry of Finance, in coordination and with the assistance of its Financial Agent, will define the mechanism corresponding to the issue, dates and amounts of placement of the same, considering the options in the

market.

Art. 7.-Authorize the Ministry of Finance to cancel any costs required by the

operations authorized by this Decree.

Art. 8.-The Ministry of Finance should be empowered to carry out the risk hedging operations

related to the interest rate according to the practice of the market and to subscribe to the corresponding contracts derived therefrom.

Art. 9.-The use of the income obtained as a product of the placement of the Titles of Credit that are authorized by this Decree, must be approved by the Legislative Assembly, in an extraordinary budget, Initiative of the President of the Republic, through the

Minister of Finance.

Art. 10. -By the nature of the obligations contained in this Decree and with the purpose

to comply with the formalities contained in Art. 148 of the Constitution of the Republic, have authorized and approved the present Decree in terms of the same slogan.

Art. 11. The Executive Units referred to in Art. 2 of this Decree shall report every ninety days to the Legislative Assembly so that it considers the appropriate. This report will contain the amounts invested, work schedule, progress of the works, goods or services, details of the areas in which they are invested, contracted companies and control mechanism of

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quality of investments.

Notwithstanding the obligation of the Court of Auditors Republic on the oversight of the use of public funds, must carry out concurrent audits and present to the Finance and Special Committee on the Budget and Public Security and Combat the Narcoactivity of the Legislative Assembly,

every ninety days, a report on the use of resources referred to by the The National Security and Citizens ' Coexistence Council must contract an independent external audit, which will ensure transparency in the use of these funds; the audit will have

be annexed to the the report referred to in the preceding paragraph.

Art. 12.-This Decree shall enter into force on the day of its publication in the Official Journal

.

GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at twenty-six days of the

month of May of the year two thousand sixteen.

LORENA GUADALUPE PEÑA MENDOZA, PRESIDENT.

GUILLERMO ANTONIO GALLEGOS NAVARRETE, ANA VILMA ALMASEZ DE ESCOBAR, FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.

JOSÉ SERAFIN ORANTES RODRÍGUEZ, NORMAN NOEL QUIJANO GONZÁLEZ, THIRD VICE-PRESIDENT. FOURTH VICE-PRESIDENT.

SANTIAGO FLORES ALFARO, FIFTH VICE PRESIDENT.

GUILLERMO FRANCISCO MATA BENNETT, DAVID ERNESTO REYES MOLINA,

FIRST SECRETARY. SECOND SECRETARY.

MARIO ALBERTO TENORIO GUERRERO, REYNALDO ANTONIO LÓPEZ CARDOZA, THIRD SECRETARY. FOURTH SECRETARY.

JACKELINE NOEMI RIVERA AVALOS, JORGE ALBERTO ESCOBAR BERNAL, FIFTH SECRETARY. SIXTH SECRETARY.

ABILIO ORESTES RODRÍGUEZ MENJÍVAR, JOSÉ FRANCISCO MERINO LÓPEZ, SEVENTH SECRETARY. EIGHTH SECRETARY.

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PRESIDENTIAL HOUSE: San Salvador, at the twenty-seventh day of May of the year two thousand Sixteen.

PUBESQUIESE, Salvador Sánchez Cerén,

President of the Republic.

Juan Ramón Carlos Enrique Cáceres Chávez, Minister of Finance.

D. O. N ° 98 Tomo N ° 411

Date: May 27, 2016

GM/geg 15/06/2016

RELATED DISPOSITION:

D. L. No. 403, 9 JUNE 2016, D. L. No. 109, T. 411, JUNE 13, 2016. (Vence 10/12/16)

SV 05/07/16

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