Read the untranslated law here: http://www.asamblea.gob.sv/eparlamento/indice-legislativo/buscador-de-documentos-legislativos/autorizase-al-ramo-de-hacienda-emitir-titulos-valores-por-365-255-625.00/archivo_documento_legislativo
1 Decree Nº 710 the Legislative Assembly of the Republic of EL SALVADOR, considering: I.-that by Legislative Decree N ° 343, dated June 21, 2007, published in the official journal N ° 115, Tome N ° 375, 25 that same month and year, issued the law of trust for investment in education, Social peace and public safety whose object was the administration of contributions, donations, or transfers, as well as the issuance of fiduciary certificates of education, Social peace and public safety, resources that would be allocated to prevention activities, fighting various forms of crime, including drug trafficking and transnational organized crime and in terms of detention, rehabilitation and rehabilitation of deprived of liberty and other activities developed by the Ministry of education.
II. that by means of Legislative Decree N ° 30, dated May 22, 2009, published in the official journal N ° 94, volume N ° 383, that same month and year, 25 was repealed Legislative Decree N ° 343, which predates and is authorized to the Executive Body in the field of finance the issuance of titles, credit values, up to the sum of three hundred and fifty million of dollars of United States of AMERICA (US$ 350,000,000.00) , which went to the cancellation of certificate trust for education, Social peace and public safety up to an amount of % 80 and three million of dollars of the United States of AMERICA (US$ 183,000,000.00) and to complete the investments in education and public safety works not covered by the trust up to the sum of % sixty and seven million of 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 in the financial markets, with dates 20 November 2009 and 7 December of the same year, were the placements of cent eighty and five million of dollars from the United States of AMERICA (US$ 185,000,000.00) and cent fifty millions of dollars of United States of AMERICA , (US$ 150,000,000.00) respectively; Likewise, dated October 4, 2010, settled the remaining fifteen millions of dollars of United States of AMERICA (US$ 15,000,000.00), adding all of the emission, the amount of three hundred and fifty million of dollars of United States of AMERICA (US$ 350,000,000.00), referred to above.
IV.-that the placement of the securities, credit values, up to an amount of three hundred and thirty and five million of dollars of the United States of AMERICA (US$ 335,000,000.00) referred to in the third recital, was made to terms of five years, which was negotiated within the conditions set out in article 2 of Legislative Decree N ° 30 before mentioned , whose maturity 2 is planned for the current fiscal year 2014, so, is obligation by the State, through the Ministry of finance, meet this commitment.
V that within a prudent and responsible analysis of the behavior of the main macroeconomic variables estimated to assess the economic environment of the public finances of the country for the present fiscal year 2014, has determined that current savings foreseen, is insufficient to cover legal obligations for the payment of the securities credit values of reference; reason why, it is necessary to supplement it with other sources of funding, for the purpose of fulfilling these commitments.
VI.-which by reason of the foregoing and in accordance with the power conferred in article 97 of the Basic Law of government financial, is convenient to authorize the Executive Body in the field of finance to issue securities of public credit on the capital markets, prior authorisation from the Legislative Assembly, for the purpose of addressing compliance in the payment of commitments that concern the recitals which precede.
Therefore, in use of his constitutional powers and at the initiative of the President of the Republic, by the Minister of finance, DECREES: article 1.-authorize the Executive branch in the field of finance, issue titles, credit values in dollars of the United States of America up to the sum of three hundred fifty and six million two hundred fifty and five thousand six hundred twenty-five dollars of the United States of AMERICA (US$ 356,255,625.00) to be placed in national or international capital market.
Article 2.-the securities of public credit, 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 of credit titles 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 securities of public credit may be issued for a term of up to 30 years and nominal value representing can pay for itself through periodic installments or at the end of the term.
3 article 3.-the placement of titles values of credit resources, must be used for the payment of principal and interest of the bonds that were used in 2009 for cancellation of fiduciary certificates of education, Social peace and public security and to complete works on education and public safety investments not covered by the trust for investment in education Social peace and public safety; and in any case may be used to fund other types of expenses, including the current.
The contravention of the provisions of the preceding paragraph, will result in criminal and civil liability as the case may be.
Article 4.-El Banco Central of reservation of El Salvador will act as financial agent of the Government and for this purpose the Ministry of Finance shall conclude with the Bank, a financial agent contract.
Article 5.-for the placement of the titles, credit values, the Ministry of finance, in coordination with its financial agent, will select the corresponding to the emission mechanism, whereas options on the market.
Article 6.-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 7.-authorized the Finance Ministry to cancel any cost that requires the operation authorized under this Decree.
Article 8.-empower the Finance Ministry to amend the appropriations of the General budget for the fiscal year 2014, in order to incorporate in the section on revenue and expenditure, to the resources that are obtained as a result of the placement of the securities credit titles that are authorized by this Decree.
Article 9.-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 in the terms the same slogan.
Article 10.-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, to the twelve days of the month of June of the year two thousand fourteen.
OTHON SIGFRIDO REYES MORALES, PRESIDENT.
ENRIQUE ALBERTO LUIS VALDEZ SOTO, GUILLERMO ANTONIO GALLEGOS NAVARRETE, SENIOR VICE PRESIDENT. SECOND VICE PRESIDENT.
4 JOSE FRANCISCO MERINO LÓPEZ, LORRAINE GUADALUPE PENA MENDOZA, THIRD VICE PRESIDENT. FOURTH VICE PRESIDENT.
CARLOS ARMANDO REYES RAMOS, FIFTH VICE PRESIDENT.
WILLIAM FRANCISCO MATA BENNETT, MANUEL VICENTE MENJIVAR ESQUIVEL, FIRST SECRETARY. SECOND SECRETARY.
SANDRA MARLENE SALGADO GARCÍA, JOSÉ RAFAEL MACHUCA ZELAYA, THIRD SECRETARY. FOURTH SECRETARY.
IRMA PALACIOS LOURDES VASQUEZ, ERNESTO ANTONIO ANGLE MILE, FIFTH SECRETARY. SIXTH SECRETARY.
FRANCISCO JOSE ZABLAH SAFIE, JOSE SERAFIN RODRIGUEZ ORANTES, SEVENTH SECRETARY. EIGHTH SECRETARY.
Presidential House: San Salvador, thirteen days of the month of June of the year two thousand fourteen.
PUBLISHED, Salvador Sanchez Ceren, President of the Republic.
Juan Ramon Carlos Enrique Caceres Chavez, Minister of finance.
D. o. No. 109 volume no. 403 date: June 13, 2014 FN/adar 15-07-2014 legislative index
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