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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ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________

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DECREE NO 656

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I.-That the Government of the Republic of El Salvador, among its purposes, contributes to increase the competitiveness and productivity of the country, through the strengthening of public entities that have competence on innovation policies, as well as through support for innovation activities in the sector

II.-That for the achievement of the above, it has been managed with the Inter-American Development Bank (IDB), a Loan Contract in the amount of up to THIRTY MILLION DOLLARS FROM THE UNITED STATES OF AMERICA (US$ 30,000,000.00), which will be used to finance the "Innovation for Competitiveness Programme".

III.-To pay attention to the above and on the basis of the provisions of Art. 148 of the Constitution of the Republic, it is appropriate to authorize the Executive Body in the Ramo de Hacienda, to subscribe to the Loan Contract to finance the project mentioned.

BY TANTO,

in use of its Constitutional powers and on the initiative of the President of the Republic, through the Minister of Finance.

DECCRETA:

Art. 1.-Authorize the Executive Body in the Ramo de Hacienda, so that, by means of its Holder or the official designated by him, he will subscribe on behalf of the State and Government of the Republic of El Salvador, a Loan Agreement with the Inter-American Bank of Development (IDB), to finance the "Innovation for Competitiveness Program", a loan that will be subject to the following conditions and stipulations:

AMOUNT AND CURRENCY OF THE LOAN: UP TO THIRTY MILLION US DOLLARS OF AMERICA (US$ 30,000,000.00).

LOAN TERM: Twenty-five (25) years, counted from the Loan Contract subscription date.

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REPAYMENT SCHEDULE: The first amortization fee will be paid in five (5) years and six (6) months, counted from the date of entry into force of the Contract and the last, at the latest, on the final date of redemption. The quotas will be paid semi-annually, consecutively and as far as possible, until the total cancellation of the loan.

INTERESTS: An annual interest rate based on LIBOR will be applied to three months, plus or minus the cost of funding the IDB, plus the applicable margin for Ordinary Capital loans; with a conversion option to a fixed interest rate or any other available interest rate conversion option. They will be paid semi-annually, starting at six (6) months from the month of entry into force of the Contract.

CREDIT COMMISSION: A Commission will be paid on the undisbursed balance of the loan to a percentage that will be established by the IDB periodically, as a result of its review of financial charges, for Ordinary Capital loans, without, in any case, exceeding 0.75% per year.

INSPECTION AND SURVEILLANCE: Established by the IDB conformity to its periodic review of financial charges for loans from the Ordinary Capital. In no case can this concept be charged in a given semester more than it is to apply 1% to the amount of the loan, divided by the number of semesters in the original period of disbursements.

DESTINATION: Financing the implementation of the "Innovation for Competitiveness Programme".

Art. 2.-According to the Special Estimates of the Loan Contract and the General Standards of the Inter-American Development Bank (IDB), the Government of the Republic of El Salvador, a

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its power and convenience, through the Minister of Finance, may request options from Interest Rate conversion, Currency and the modification of the Loan Amortization Cronogram, without the latter exceeding twenty-five (25) years of term.

Art. 3.-The Loan Agreement signed 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 the approval of this Legislative Assembly 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 HALL OF THE LEGISLATIVE PALACE: San Salvador, at three days of the month of April 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.

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.

CASA PRESIDENTIAL: San Salvador, four days of the month of April of the year two thousand fourteen.

PUBESQUIESE,

Carlos Mauricio Funes Cartagena, President of the Republic.

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Juan Ramon Carlos Enrique Cáceres Chávez, Minister of Finance.

D. O. No. 65 Took Nº 403 Date: April 4, 2014

JBCHM/ielp 26-04-2014

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