Provisions...

Original Language Title: DISPOSICIONES...

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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________

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DECREE NO 670

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I.-That the Agricultural Development Bank through the Cerealero Program, granted, to 50,000 small farmers, microcredits in the amount of $100.00 Dollars from the United States of America, funds that would be used for to obtain agricultural inputs for the planting of cereals, such as maize, beans and others.

II. year 1998, agricultural crops were damaged and destroyed by the natural phenomenon named Storm Mitch; the damage to crops was severe, with floods near 1000 km2 of grassland or cultivated land. The floods destroyed 37% of the production of beans, 19% of corn and 20% of sugar cane. At the same time there were huge losses in livestock farming, including the deaths of approximately 10,000 animals; in addition, the floods destroyed bridges and damaged 2,000 km of unpaved roads; it is worth mentioning that, in 2005, the agricultural harvests were damaged and destroyed by the natural phenomenon known as Hurricane Stan; both natural phenomena caused losses for the producers of basic grains and prevented them from being able to cancel the credits they had received for planting their harvests.

III.-That the payment of the referred microcredits granted to them small farmers, would do so with the sale of the product obtained from the harvest in reference, but due to the natural phenomena that occurred the harvests were lost, which has caused to the date that the beneficiaries have not had the financial capacity to settle the outstanding debt.

IV.-That in 2009 through Legislative Decree No. 53, dated June 24, that year, published in Official Journal No. 133, Volume No. 384, dated July 17, 2009; and of the Decree Legislative No 805 dated August 11, 2011, published in Official Journal No. 168, Volume 392, dated 9 of In September of the same year, Special and Transitional Provisions were issued which were intended to contribute to the development and strengthening of small farmers, by establishing measures to facilitate the payment of their credits, and thus to resolve their credit status, which would allow them again to acquire inputs to work on their subsistence crops, with one of them being the cancellation of the credit owed within the program through the early payment mechanism of $1.25 dollar for every hundred dollars of the United States of America ($100.00), with what would be left (v) the debt.

V.-That when the legislative decrees described in the previous recital were issued, there was an initial portfolio of debtors of 30,739 cases, of which only 6,412 debtors were eligible for this profit, that is 20.86%, with a hold portfolio of 23,446 credits. These small

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farmers have fallen into a late payment, which does not allow them to be subject to credit. financial institutions, so they are faced with the difficulty of obtaining new credits to work their lands and also for the payment of the acquired debt.

VI.-That based on the above it is necessary to issue again Special and Transitional, which allows small agricultural producers to leave this situation of late, so that they can work their land and be subject to credits.

BY TANTO,

in use of their constitutional powers and at the initiative of the Deputies José Francisco Merino, Orestes Fredesman Ortez Andrade, Mario Marroquín Mejía, Abel Cabezas, Audelia Guadalupe López de Kleutgens, David Rodríguez Rivera, Lorenzo Rivas Echeverria, Rubio Ronald Rivas, Omar Arturo Escobar Oviedo, José Álvaro Cornejo, José Santos Melara, Samuel López; and with the support of the Member Martyr Arnoldo Marin Villanueva.

DECRETA the following Special Provisions and Transient as well:

Art. 1.-All those farmers who were benefited by the granting of up to two hundred dollars credits from the United States of America ($100.00) each, or one of two hundred dollars from the United States of America ($200.00), which the Banco de Fomento Agricario granted them within the Cerealero Program 2005 of that year with own resources, and transferred mostly to the Special Trust Kredinstanstalt Fur Wierderaufbau (KFW), and which to date are with balances pending, including in these, administrative expenses for the management of the aforementioned credits and also the capital and interests of all kinds, for with that institution, will have for the cancellation of these debts through the mechanism of soon payment for the amount of $1.25 of dollar of the United States of America, for every hundred dollars of the United States of America America ($100.00) of credit granted, leaving with it settled in its entirety the referred credit.

Once effected the payment of the $1.25 dollars of the United States of America, for every hundred dollars of the United States of America ($100.00) the Bank as such, in its capacity as the trustee of the Bank, as a credit institution of the Bank. Special Trust of the Agricultural Sector (FIDEAGRO) or as administrator of the Kredinstanstalt Fur Wierderaufbau (KFW) Trust Convention, will extend the total cancellation voucher to the debtor, or the third party making the payment by account of the latter, and shall draw up the accounting items to be carried out for that purpose in the accounts of the Bank and of each of the trusts referred to.

Art. 2. This Decree is also incorporated, all the beneficiaries who received credits for sowing, which as a result of the natural phenomena Storms Mitch and Stan, were affected in their crops of basic grains; provided that the amounts of credits awarded do not exceed two hundred dollars from the United States of America ($200.00); regardless of the form that was contracted.

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Art. 3.-The beneficiaries of this Decree will have a period of two years, starting from the term of the same to benefit from this.

Art. 4.-For the period of two years, suspend the commercial executive judgments at any stage, initiated against natural or legal persons referred to in Article 1 of this Decree.

Art. 5.-The Agricultural Development Bank shall publish by means of the means it deems appropriate, the content of this Decree, and notify the beneficiaries thereof, in order to be aware of its content. Likewise, to inform the related institutions, about the cancelled credits, in order not to affect the credit record.

Art. 6.-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, two days of the month of May of the year two thousand fourteen.

OTHON SIGFRIDO REYES MORALES, PRESIDENT.

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

JOSÉ FRANCISCO MERINO LÓPEZ, FRANCISCO ROBERTO LORENZANA DURAN, THIRD VICE PRESIDENT. FOURTH VICE-PRESIDENT.

CARLOS ARMANDO REYES RAMOS, FIFTH VICE PRESIDENT.

LORENA GUADALUPE PEÑA MENDOZA, 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.

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PRESIDENTIAL HOUSE: San Salvador, at the sixteenth day of May of the year two thousand fourteen.

PUBestuESE,

Carlos Mauricio Funes Cartagena, President of the Republic.

Pablo Alcides Ochoa Quinteros, Minister of Agriculture and Livestock.

D. O. Nº 90 Took Nº 403 Date: May 20, 2014

SV/adar 30-06-2014

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