Read the untranslated law here: http://www.asamblea.gob.sv/eparlamento/indice-legislativo/buscador-de-documentos-legislativos/autorizase-al-organo-ejecutivo-en-el-ramo-de-hacienda-emitir-titulos-valores-de-credito-hasta-por-la-suma-152-000-000.00/archivo_documento_legislativo
1 Decree N ° 388 the Legislative Assembly of the Republic of EL SALVADOR, considering: I.-that the State Financial Administration Act states that it is attribution of the Ministry of finance, on behalf of the State, placing securities on capital markets, prior authorisation from the Legislative Assembly.
II.-that the Constitution of the Republic establishes that the Executive branch in the corresponding branch, is empowered to carry out financial operations of credit, aimed to generate those resources to meet urgent and unavoidable obligations that demand the population.
III. that in recent years there has been a serious worsening in the field of crime in the country and in the region, because of the emergence of progressive new forms of criminality, which are characterized by an organized type, which has required the adoption of extraordinary measures by all the institutions of the State which are engaged in joint actions, in order to reassure the inhabitants of the Republic the enjoyment of their rights, fighting these new forms of crime in a comprehensive manner.
IV. that under the current circumstances, it becomes indispensable to strengthen, so comprehensive, special and extraordinary, the attention that is should provide citizen security coverage, with measures designed to guarantee the financing of these.
V in the reason to the foregoing and on the basis of provisions of article 148 of the Constitution of the Republic, it is coming to empower the Executive branch in the field of finance, issue titles, credit values.
Therefore, use of his constitutional powers and at the initiative of the President of the Republic, by the Minister of finance.
Decree: Article 1.-authorize the Executive branch in the field of finance, for which issued titles values of credit in dollars of the United States of America up to the sum of % fifty and two million of dollars of the United States of AMERICA, (US$ 152,000,000.00) to be placed either on the national or international market.
2 article 2.-the proceeds from the issuance of the securities, credit values will be used to meet, comprehensive financing, that demands for the proper and timely implementation of extraordinary measures of public security and other actions related to the coverage of public safety. These funds will be allocated as well: for the improvement and expansion of the prison system, the amount of forty and three million five hundred thousand dollars of the United States of AMERICA (US$ 43,500,000.00), which should be used for construction of three centers of temporary detention; equipment of the same; recruitment of staff to temporary centres; current expenses of the three centers of temporary detention; construction of solitary confinement; purchase pickup and minivans for criminal and temporary centers with gang members; acquisition of property, equipment and infrastructure arrangements to achieve greater security in the shoot-out with gang members and current expenditure of the same; for new criminal law; material defence and security including food and ammunition by increase in prison population.
For the strengthening of the National Civil Police, to implement the various actions with a total of forty and three million seven hundred fifty thousand dollars of the United States of AMERICA (US$ 43,750,000.00), which should be used for equipment of special reaction of the National Civil Police Force and army of El Salvador, night visors and backpacks force layers, mattresses, cabins, and all kinds of equipment; recognition and air monitoring for special reaction force, including purchase, operation and maintenance of drones; current expenditure for special forces of reaction of the National Civil Police and armed force of El Salvador, such as dry ration, maintenance of premises and vehicles, fuel in vehicles and aviation and ammunition among others. Fund for families of fallen police officers; reinforcement and greater operational equipment modernization and intelligence; renovation of weaponry; computer accessory, bulletproof vest, communications radios, improving conditions for rest and reinforcing intelligence.
The Ministry of national defense to an amount of nineteen million nine hundred fifty thousand dollars of the United States of AMERICA (US$ 19,950,000.00), which should be used for operational capacity of 6,300 elements of force Navy of El Salvador, funds for fallen military and operational capacity and payment of 1,000 reservists of the armed force of El Salvador.
The social security system of the Institute of Social Welfare of the armed forces an amount of thirty and seven million three hundred thousand dollars of the United States of AMERICA (US$ 37,300,000.00), which must be used for payment of pensions.
For the Attorney General of the Republic, the amount of seven million five hundred thousand dollars of the United States of AMERICA (US$ 7,500,000.00), which should be used for partial renewal of the vehicle fleet, technological applications, strengthening of tax offices and common wage levels of staff.
Article 3.-Los titles values credit, whose issuance is authorized in the present Decree will be issued subject to the following conditions: to) the performance of the securities securities of credit will be determined at the time of the transaction, in accordance with the conditions of the financial market. The values 3 titles of credit may have a discount or award, according to the practice of the market;
(b) the nominal value and the values of credit securities yields shall be exempt from all sorts of taxes, fees and contributions. Capital gains obtained by the sale of such securities shall be subject to the tax treatment which stipulates the relevant legislation; and, c) the titles values of credit may be placed for a term up to 30 years. The nominal value that they represent, can pay for itself through periodic installments, by a single payment at the end of the period or at a pre-set date.
Article 4.-El Banco Central of reservation of El Salvador will act as financial agent of the Government and for that purpose, the Ministry of Finance shall conclude with the Bank, the respective contract's financial agent.
Article 5.-the resources obtained product of this Decree, shall not be transferable, and may not be used for purposes, other than those laid down in this Decree; and they must be deposited in a special account that created the Ministry of finance in the General direction of Treasury, pursuant to article 74 of the Basic Law of the State financial administration for this purpose.
Article 6.-for the placement of the securities credit titles, the Ministry of finance, in coordination and with the assistance of its financial agent, will define the mechanism corresponding to emission, dates and amounts of the same placement, considering the options available on the market.
Article 7.-to authorize the Ministry of finance to cancel any costs that require operations authorized by this Decree.
Article 8.-empower the Finance Ministry perform for hedging of risks related to the rate of interest according to the practice of the market, and so it signed relevant contracts resulting from them.
Article 9.-the use of the income obtained as a result of the placement of the securities credit titles that are authorized by this Decree, must be approved by the Legislative Assembly, in a special budget, at the initiative of the President of the Republic, by the Minister of finance.
Article 10. -By the nature of the obligations contained in the present Decree and with the purpose of accomplishing the formalities contained in article 148 of the Constitution of the Republic, toil is for authorized and approved this Decree in the terms the same slogan.
Article 11.-the executing units referred to in article 2 of this decree must report every ninety days to the Legislative Assembly that it deems. This report shall contain the amounts invested, work schedule, progress of works, goods or services, details of the items that are reversed, contracted companies and 4 investment quality control mechanism.
However the duty of the Court of accounts of the Republic on the control on the use of public funds, should conduct concurrent audits and submit to the Commission of finance and budget special and public security and combat drug trafficking of the Legislative Assembly, every ninety days, a report on the use of resources to that referred to in this Decree; In addition, the National Security Council and citizen coexistence, must hire an independent external audit, that would ensure transparency in the use of such funds; the audit must be annexed in the report referred to in the preceding paragraph.
Article 12.-this Decree shall enter into force as from the day of its publication in the official journal.
GIVEN in the blue room of the Legislative Palace: San Salvador, the twenty-sixth day of may in the year two thousand and sixteen.
LORRAINE GUADALUPE PENA MENDOZA, PRESIDENT.
GUILLERMO ANTONIO GALLEGOS NAVARRETE, ANA VILMA ALBANEZ DE ESCOBAR, SENIOR VICE PRESIDENT. SECOND VICE PRESIDENT.
JOSE SERAFIN RODRIGUEZ ORANTES, NORMAN NOEL QUIJANO GONZÁLEZ, THIRD VICE-PRESIDENT. FOURTH VICE PRESIDENT.
SANTIAGO FLORES ALFARO, FIFTH VICE PRESIDENT.
WILLIAM FRANCISCO MATA BENNETT, DAVID ERNESTO REYES MOLINA, FIRST SECRETARY. SECOND SECRETARY.
MARIO ALBERTO TENORIO GUERRERO, REYNALDO ANTONIO LOPEZ CARDOZA, THIRD SECRETARY. FOURTH SECRETARY.
JACKELINE NOEMI RIVERA AVALOS, JORGE ALBERTO ESCOBAR BERNAL, FIFTH SECRETARY. SIXTH SECRETARY.
ABILIO ORESTES RODRIGUEZ MENJIVAR, JOSE FRANCISCO MERINO LÓPEZ, SEVENTH SECRETARY. EIGHTH SECRETARY.
5 presidential House: San Salvador, twenty-seven days of the month of may of the year two thousand and sixteen.
PUBLISHED, Salvador Sanchez Ceren, President of the Republic.
Juan Ramon Carlos Enrique Caceres Chavez, Minister of finance.
D. O. N ° 98 volume N ° 411 date: 27 of may 2016 GM/geg 15/06/2016 disposal related: D. L. No. 403, 9 June 2016, D. L. No. 109, T. 411, 13 June 2016. (Expires 10/12/16)
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