Be Authorized To The Field Of Finance Issue Titles Values By $356,255,625.00.

Original Language Title: AUTORÍZASE AL RAMO DE HACIENDA EMITIR TÍTULOS VALORES POR $356,255,625.00.

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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________

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DECREE NO 710

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I.-That by Legislative Decree No. 343, dated June 21, 2007, published in Official Journal No. 115, Volume No. 375, of the 25th of the same month and year, the Law of the Trust for Investment in Education, Social Peace and Citizen security, the object of which was the administration of contributions, donations or transfers, as well as the Issuance of Certificates of Education, Social Peace and Citizen Security, resources that would be used for prevention activities, combat the various forms of crime, including drug trafficking and organized crime The Ministry of Education, the Ministry of Education, and the Transnational and the Ministry of Education.

II.-That by Legislative Decree No. 30, dated May 22, 2009, published in The Official Journal No 94, Volume No 383, of the 25th of the same month and year, the Legislative Decree was repealed N ° 343, which precedes and authorized to the Executive Body in the Ramo of Finance the issue of Titles Credit Securities up to the sum of THREE HUNDRED AND FIFTY MILLION DOLLARS FROM THE UNITED STATES OF AMERICA (US$ 350,000,000.00), which is To the cancellation of CERTIFICATES OF TRUSTEES of Education, Social Peace and Citizen Security up to an amount of HUNDRED AND EIGHTY-THREE MILLION DOLLARS FROM THE UNITED STATES OF AMERICA (US$ 183,000,000.00) and to complete the investments of works in education and public security not covered with the Trust up to the sum of CIENTO SIXTY-SEVEN MILLION DOLLARS FROM THE UNITED STATES OF AMERICA (US$ 167,000,000.00).

III.-That due to the impact of the international financial crisis and the situation of the financial markets, with dates 20 of November 2009 and December 7 of that same year, the placements of HUNDRED AND EIGHTY FIVE MILLIONS OF DOLLARS FROM THE UNITED STATES OF AMERICA (US$ 185,000,000.00) AND ONE HUNDRED AND FIFTY MILLION DOLLARS FROM THE UNITED STATES OF AMERICA, (US$ 150,000,000.00), respectively; likewise, dated October 4, 2010, the remaining FIFTEEN MILLION DOLLARS FROM THE UNITED STATES OF AMERICA (US$ 15,000,000.00), adding the total This issue, the amount of THREE HUNDRED AND FIFTY MILLION DOLLARS FROM THE UNITED STATES OF AMERICA (US$ 350,000,000.00), referred to above.

IV.-That the placement of the Titles Credit Securities up to the amount of THREE hundred THIRTY-FIVE MILLION DOLLARS FROM THE UNITED STATES OF AMERICA (US$ 335,000,000.00) referred to in the third recital, was made within five years, which was negotiated within the conditions set out in Art. 2 of the Legislative Decree No 30 referred to above, due to expire

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is planned for this fiscal year 2014, so it is an obligation on the part of the State, through the Ministry of Finance, to address this commitment.

V.-That within a prudent and responsible analysis of the behavior of the main macroeconomic variables estimated to evaluate the economic environment of the finances For the present fiscal year 2014, it has been determined that the savings This is not enough to cover the legal obligations programmed for the payment of the Titles of Credit Securities in reference; reason why, it is necessary to supplement it with other sources of financing, to the effects of complying with these commitments.

VI.-That, in view of the above and in accordance with the power conferred on Art. 97 of the Organic Law of the State Financial Administration, it is appropriate to authorize the Executive Body in the Ramo de Hacienda, to issue Titles of Public Credit in the capital markets, prior to the authorization of the Legislative Assembly, for the purposes of meeting the payment of the commitments referred to in the preceding recitals.

FOR TANTO,

in use of its constitutional powers and Initiative of the President of the Republic, through the Minister of Finance,

DECCRETA:

Art. 1.-Authorize the Executive Body in the Land of Finance, to issue Titles of Credit in Dollars of the United States of America up to the sum of THREE HUNDRED AND FIFTY-SIX MILLION TWO HUNDRED AND FIFTY-FIVE THOUSAND SIX HUNDRED TWENTY-FIVE DOLLARS FROM THE UNITED STATES OF AMERICA (US$ 356,255,625.00), to be placed on the domestic or international capital market.

Art. 2.-The Securities of Public Credit shall be issued in accordance with the following conditions:

a) The performance of the Titles Credit Securities will be determined at the time of the transaction, in accordance with market conditions financial. The Securities of Credit Securities may have a discount or prize, according to market practice;

b) The nominal value and yields of the Securities of Credit Securities will be exempt from all kinds of taxes, fees and contributions. The capital gain obtained by the purchase-sale of such securities shall be subject to the tax treatment provided for in the relevant legislation; and,

c) The Securities of Public Credit Securities may be issued within a period of up to 30 years. years and the nominal value they represent can be amortized by periodic quotas or at the end of the term.

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Art. 3.-The resources arising from the placement of Titles of Credit, must be used for the payment of capital and interest of the issuance of the bonds that were used in 2009 for the cancellation of Education, Social Peace and Citizen Security and to complete the investments of works in education and public safety not covered with the Trust for Investment in Education, Social Peace and Citizen Security; and in no case will they be used to finance other expenses, including the current.

The violation of the provisions of the The above paragraph will give rise to criminal and civil liability as the case may be.

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

Art. 5.-For the placement of the Securities of Credit, the Ministry of Finance, in coordination with its Financial Agent, will select the mechanism corresponding to the issue, considering the options available in the market.

Art. 6.-The Ministry of Finance shall be empowered to carry out the risk hedging operations related to the interest rate in accordance with the practice of the market and to subscribe to the corresponding contracts derived therefrom.

Art. 7.-Authorize the Ministry of Finance to cancel any costs that may be required by the operation authorized by this Decree.

Art. 8.-The Ministry of Finance should be empowered to modify the allocations of the General Budget for the fiscal year 2014, in order to incorporate in the Income and Expenditure Section the resources to be obtained as a product of the placement of the Titles of Credit that are authorized by this Decree.

Art. 9.-By the nature of the obligations contained in this Decree and in order to comply with the formalities contained in Art. 148 of the Constitution of the Republic, be authorized and approved in terms of the same slogan.

Art. 10.-This Decree shall enter into force from the day of its publication in the Official Journal.

GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the twelve days of June of the year two thousand fourteen.

OTHON SIGFRIDO REYES MORALES, PRESIDENT.

ENRIQUE ALBERTO LUIS VALDEZ SOTO, GUILLERMO ANTONIO GALLEGOS NAVARRETE, FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.

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JOSÉ FRANCISCO MERINO LÓPEZ, LORENA GUADALUPE PEÑA MENDOZA, THIRD VICE PRESIDENT. FOURTH VICE-PRESIDENT.

CARLOS ARMANDO REYES RAMOS, FIFTH VICE PRESIDENT.

GUILLERMO FRANCISCO MATA BENNETT, MANUEL VICENTE MENJÍVAR ESQUIVEL, FIRST SECRETARY. SECOND SECRETARY.

SANDRA MARLENE SALGADO GARCÍA, JOSÉ RAFAEL MACHUCA ZELAYA, THIRD SECRETARY. FOURTH SECRETARY.

IRMA LOURDES PALACIOS VÁSQUEZ, ERNESTO ANTONIO ANGULO MILLA, FIFTH SECRETARY. SIXTH SECRETARY.

FRANCISCO JOSE ZABLAH SAFIE, JOSE SERAFIN ORANTES RODRIGUEZ, SEVENTH SECRETARY. EIGHTH SECRETARY.

CASA PRESIDENTIAL: San Salvador, on the thirteenth day of June of the year two thousand fourteen.

PUBESQUIESE,

Salvador Sánchez Cerén, President of the Republic.

Juan Ramón Carlos Enrique Cáceres Chávez, Minister of Hacienda.

D. O. No. 109 Took Nº 403 Date: June 13, 2014

FN/adar 15 -07-2014

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