Authorize Loan Agreement With American Development Bank (Idb), For $ 30,000,000.00.

Original Language Title: AUTORÍZASE CONTRATO DE PRÉSTAMO CON EL BANCO INTERAMERICANO DE DESARROLLO (BID), POR $30,000,000.00.

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Read the untranslated law here: http://www.asamblea.gob.sv/eparlamento/indice-legislativo/buscador-de-documentos-legislativos/autorizase-suscbribir-un-contrato-de-prestamo-con-el-banco-interamericano-de-desarrollo-bid-por-30-000-000/archivo_documento_legislativo



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DECREE No. 656 THE LEGISLATURE OF THE REPUBLIC OF EL SALVADOR, CONSIDERING
:
I. The Government of the Republic of El Salvador, has among its aims to contribute to increase competitiveness and productivity of the country, through the strengthening of public entities that have jurisdiction over innovation policies and by supporting innovation activities in the productive sector.
II.- to achieve the above, has been managed with the Inter-American Development Bank (IDB), a Loan Agreement in the amount of up to THIRTY MILLION DOLLARS OF THE UNITED STATES OF AMERICA (US $ 30,000,000.00 ) which they will be used to finance the "Program Innovation for Competitiveness".
III.- That attention to the above and based on the provisions of Art. 148 of the Constitution of the Republic, it is appropriate to authorize the Executive Branch in the Field of Finance to sign the Loan Agreement to finance the said project.
THEREFORE,
in exercise of its constitutional powers and initiative of the President of the Republic, through the Minister of Finance. DECREES
:
Art. 1. Authorize the Executive Branch in the Field of Finance, so that by the holder or the official designated by him, subscribe on behalf of the State and Government of the Republic of El Salvador, a Loan Agreement with the IDB development Bank (IDB) to finance the "Program Innovation for Competitiveness" loan is subject to the following conditions and stipulations:
lOAN AMOUNT aND CURRENCY: tO THIRTY MILLION DOLLARS oF tHE UNITED STATES oF AMERICA (US $ 30,000,000.00).

TERM LOAN: Twenty-five (25) years from the date of signing of the Loan Agreement.


2 AMORTIZATION SCHEDULE: The first repayment installment will be paid in five (5) years and six (6) months from the date of entry into force of the Agreement and the latest, by in the final redemption date. The fees will be paid semiannually, consecutively and possibly equal to the total cancellation of the loan.
INTERESTS: annual interest rate based on three-month LIBOR, plus or minus the cost of funding the IDB, plus the applicable margin for Ordinary Capital loans will be applied; with option to convert to a fixed interest rate or any other available option interest rate conversion. These are payable semiannually, beginning six (6) months from the month of entry into force of the Agreement.
Credit commission: a commission on the undisbursed balance of the loan at a rate to be set by the IDB periodically as a result of its review of financial charges for Ordinary Capital loans without be paid, in any case may not exceed 0.75% per year.
INSPECTION AND SURVEILLANCE: Established by the IDB in accordance with its periodic review of financial charges for ordinary capital loans. In no case you may charge for this purpose in a given semester more than would result from applying 1% to the loan amount divided by the number of semesters included in the original disbursement period.
DESTINATION: Financing the implementation of the "Innovation for Competitiveness".
Art. 2. In accordance with the Special Conditions of the Loan Agreement and the General Regulations of the Inter-American Development Bank (IDB), the Government of the Republic of El Salvador,
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its power and convenience, through the Minister of Finance, may request conversion options Interest Rate, Currency and modification of the Loan Amortization Schedule, without the latter exceed twenty-five (25) year term.
Art. 3. The Loan Agreement entered into by the Government of the Republic of El Salvador with the Inter-American Development Bank (IDB), in accordance with this Decree, shall be subject to approval by the Legislature for its validity.
Art. 4. This Decree shall enter into force from the day of its publication in the Official Journal.
GIVEN IN THE BLUE ROOM OF THE LEGISLATIVE PALACE: San Salvador, on the third day of April in the year two thousand and fourteen.
OTHON Sigfrido Reyes Morales, president.
LUIS VALDEZ ENRIQUE ALBERTO SOTO, GUILLERMO ANTONIO NAVARRETE GALLEGOS, FIRST VICE. SECOND VICE PRESIDENT.
MERINO JOSE FRANCISCO LOPEZ, FRANCISCO ROBERTO DURAN LORENZANA, THIRD VICE. FOURTH VICE.
CARLOS ARMANDO REYES RAMOS, FIFTH VICE.

PEÑA LORENA GUADALUPE MENDOZA, MENJIVAR VICENTE MANUEL ESQUIVEL, First Secretary. Second Secretary.
SALGADO SANDRA MARLENE GARCIA, JOSE RAFAEL MACHUCA Zelaya, Third Secretary. Fourth secretary.
IRMA VASQUEZ PALACIOS LOURDES, ERNESTO ANTONIO ANGULO MILE, QUINTA Secretariat. SIXTH SECRETARY. JOSE FRANCISCO
ZABLAH SAFIE, ORANTES SERAFIN JOSE RODRIGUEZ, seventh Secretary. EIGHTH SECRETARY.
PRESIDENTIAL HOUSE: San Salvador, on the fourth day of April in the year two thousand and fourteen.
Published, Carlos Mauricio Funes Cartagena
, President of the Republic.
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Juan Ramon Caceres Carlos Enrique Chavez, Minister of Finance.
OJ No. 65 Volume No. 403 Date: April 4, 2014 JBCHM
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IELP 04/26/2014 LEGISLATIVE INDEX