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-800-000-000.00/archivo_documento_legislativo
1 Decree Nº 711 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 in accordance with provisions in the Constitution, the Executive branch in the corresponding field, is empowered to perform financial operations aimed at consolidation or conversion of public debt, which is particularly relevant, in order to raise the profile of the debt portfolio and reduce pressures of fiscal box; all prior authorization of the Legislative Assembly.
III. in view of the foregoing and on the basis of provisions of article 148 of the Constitution of the Republic, is suitable to empower the Executive branch in the field of finance, issue titles, credit values to convert short-term debt for medium- or long-term bonds.
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 eight hundred million dollars from the United States of America (US$ 800,000,000.00), to be placed either on the national or international market.
Article 2.-the proceeds from the issuance of the securities securities of credit will be allocated exclusively to convert the debt of short-term Central Government (letters from the public Treasury), in medium and long term debt; and in any case may be used to finance another type of expenses, including the current.
The contravention to it arranged in the subsection above, will give place to liability criminal and civil according to is the case.
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 2 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 value nominal and the yields of those titles values of credit will be exempt of all class of taxes, rates and contributions. The gain of capital obtained by the sale of such titles values will be subject to the treatment tax that provides the legislation relevant; 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.-for the placement of the titles, credit values, the Ministry of finance, in coordination with 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 6.-authorize the Ministry of finance to cancel any cost that requires the operation authorized under this Decree.
Article 7.-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 8.-the income obtained as a result of the placement of the securities credit titles that are authorised by means of this Decree, be incorporated into to the General State budget for the fiscal year in which the conversion takes place.
Article 9.-by the nature of them obligations contained in the present Decree and with the purpose of give you compliance to them formalities contained in the Art. 148 of the Constitution of the Republic, toil is by authorized and approved the present Decree in them terms that the same luggage.
Article 10.-this Decree shall enter into force as from the day of its publication in the official journal.
GIVEN in the SALON blue of the Palace legislative: San Salvador, to the twelve days of the month of June of the year two thousand fourteen.
OTHON SIGFRIDO REYES MORALES, PRESIDENT.
3 ENRIQUE ALBERTO LUIS VALDEZ SOTO, GUILLERMO ANTONIO GALLEGOS NAVARRETE, SENIOR VICE PRESIDENT. SECOND VICE PRESIDENT.
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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