DECREE No. 420 THE LEGISLATURE OF THE REPUBLIC OF EL SALVADOR, CONSIDERING
I.- by Legislative Decree No. 68, dated July 20, 2000 published in the Official Gazette No. 146, Volume No. 348, August 9 the same year, he authorized the Executive Branch, through the Ministry of Agriculture and Livestock, the transfer of state resources in the amount of ¢ 400,000,000 .00 the Agricultural Development Bank; portion thereof intended for capital strengthening and to provide the Special Trust Fund for the Agricultural Sector, hereinafter called FIDEAGRO, which was reformed by Legislative Decree No. 140, dated September 13, 2000, published in the Official Journal No. 178, Volume No. 348, 25 of the same month and year, in order to further strengthen the Bank's equity, with the remaining resources of FIDEAGRO.
II.- different events in the country, such as the earthquakes of 2001, weather phenomena and the crisis in the coffee sector, it became necessary to provide the Agricultural Development Bank more resources in order to support intensively the agricultural sector of the country, so it was amended again the aforementioned Legislative Decree No. 68, through Legislative Decree No. 619, dated November 23, 2001, published in the Official Gazette No. 227, Volume No. 353, 30 of the same month and year. That
III in 2011, at the initiative of the Government of the Republic and with the support of the Ministry of Agriculture, is subsidized by 5 percentage points the interest rate of loans for basic grains in amounts up to US $ 6,000.00 and also the Ministry of Finance, through the Agricultural Guarantee Program, PROGARA, gave cover one hundred percent farmers against natural disasters on loans up to US $ 3,000.00.
IV.- That to continue providing these loans on soft terms, by Legislative Decree No. 123, dated September 6, 2012, published in the Official Gazette No. 177, Volume No. 396, 24 of the same month and year, was amended Legislative Decree No. 68 already mentioned, in the sense of creating a Guarantee Fund and a Fund for Compensating again Prime rate on the credits granted by the Agricultural Development Bank to micro producers basic grains and other agricultural producers who ask micro financing from harvest 2012.
V.- that although the Guarantee Fund may increase with the product expressly recoveries of credits FIDEAGRO is not clear in the case for Compensating Fund Prime rate with which the micro credits of basic grains and other agricultural producers micro producers are granted; which would lead to the exhaustion of the amount of the two
2 million in the United States of America that the Fund was created to grant loans to market rate.
VI.- That in order to further support the development of micro producers of basic grains and other agricultural micro producers supported with special lines, it is necessary to reform the Art. 7-A, in order that the amount referred to fourth paragraph can be extended gradually according to the demand of producers, which will compensate the Agricultural Development Bank the preferential interest rate loans to micro producers benefit granted.
VII.- That is strategic for the development of the agricultural sector, to support the livestock sector, increasing the maximum loan amount for this specific production subsector, US $ 3,000.00 to US $ 30,000.00 per customer, which would fall too, the Compensation Fund referred recital V of this decree.
in exercise of its constitutional powers and initiative of President of the Republic, through the Minister of Agriculture and Livestock,
DECREES the following:
AMENDMENTS TO THE LEGISLATIVE DECREE No. 68, DATED 20 JULY 2000, PUBLISHED IN THE OFFICIAL GAZETTE No. 146, Book No. 348,
August 9 the same year.
Art. 1. Intercálase after the fourth of Art 7-A subsection, the following paragraph would be the fifth and last paragraph is amended, as follows:.
"For loans and future to grant micro producers agricultural livestock sector, may offset the interest rate from the effective date of this decree for financing for an amount of up to thirty thousand dollars of the United States of America, per customer. The percentage of the interest rate to be compensated by the Trustor be revised annually by itself or proposal Agricultural Development Bank. "
"The elements referred to by the third, fourth and fifth paragraphs of this article, as well as the operation of the Guarantee Fund will be established in the Operating Regulations approved by the Minister of Agriculture itself or on a proposal from the Bank".
Art. 2. hereby added after section 7-A, 7-B Art, as follows:..
"Art. 7-B.- The amount referred to in the fourth paragraph of the preceding article, may be increased gradually with the proceeds of recoveries FIDEAGRO. "
Art. 3. Authorize the Executive Branch in the field of Agriculture that through
3 of the owner or the person designated, signed with the Agricultural Development Bank modification of the Deed of FIDEAGRO, in order that fits the provisions of this Decree.
Art. 4. This Decree shall enter into force eight days after its publication in the Official Journal.
GIVEN IN THE BLUE ROOM OF THE LEGISLATIVE PALACE: San Salvador, on the eleventh day of July of the year two thousand and thirteen.
OTHON Sigfrido Reyes Morales, president.
ALBERTO ROMERO ARMANDO RODRIGUEZ, GUILLERMO ANTONIO NAVARRETE GALLEGOS, FIRST VICE. SECOND VICE PRESIDENT.
MERINO JOSE FRANCISCO LOPEZ, FRANCISCO ROBERTO DURAN LORENZANA, THIRD VICE. FOURTH VICE.
ROBERTO JOSE d'Aubuisson MUNGUIA, FIFTH VICE.
PEÑA LORENA GUADALUPE MENDOZA, CARMEN ELENA CALDERON SOL DE ESCALON, First Secretary. Second Secretary.
SALGADO SANDRA MARLENE GARCIA, JOSE RAFAEL MACHUCA Zelaya, Third Secretary. Fourth secretary.
IRMA VASQUEZ PALACIOS LOURDES, MARGARITA ESCOBAR, FIFTH SECRETARY. SIXTH Secretariat. JOSE FRANCISCO
ZABLAH SAFIE, REYNALDO ANTONIO LOPEZ Cardoza seventh Secretary. EIGHTH SECRETARY.
PRESIDENTIAL HOUSE: San Salvador, the ninth day of August in the year two thousand and thirteen.
Published, Carlos Mauricio Funes Cartagena, President of the Republic
Alcides Ochoa Pablo Quinteros, Minister of Agriculture and Livestock.
Tomo OJ No. 145 No. 400 Date: August 12, 2013
FNM / geg 09/09/2013