Read the untranslated law here: http://www.asamblea.gob.sv/eparlamento/indice-legislativo/buscador-de-documentos-legislativos/reformase-el-d.l.-68-2000/archivo_documento_legislativo
1 index Legislative Decree Nº 123 LA Legislative Assembly of the Republic of EL SALVADOR, considering: I.-that by Decree legislative No. 68, dated July 20, 2000, published in the Official Journal No. 146, vol. No. 348, of 9 August of the same year, was authorized to the Executive Branch, through the Ministry of agriculture and livestock, the transfer of resources from the State for an amount of ¢ 400,000,000.00 to the Banco de Fomento Agropecuario; part of these intended for his patrimonial strengthening and to constitute the trust of special agriculture, hereinafter called FIDEAGRO, which was reformed by means of Legislative Decree No. 140 of dated September 13, 2000, published in the Official Journal No. 178, volume no. 348, from the 25th of the same month and year, with the aim of additionally strengthen the assets of the Bank , with the remnants of the FIDEAGRO resources.
II.-that for different events in the country, such as the earthquakes in 2001, weather events and the crisis in the Coffee Sector, became necessary to provide the Bank of agricultural development of greater resources, in order to intensively support to the agricultural sector of the country, so it was again reformed the referred decree legislative number 68, through Legislative Decree No. 619 dated November 23, 2001, published in the Official Journal No. 227, volume no. 353, 30 of the same month and year.
III.-that in 2011, at the initiative of the Government of the Republic and with the support of the Ministry of agriculture and livestock, are subsidized by 5 percentage points the interest rate of loans for basic grains for amounts up to US$ 6,000.00 and in addition, the Ministry of finance, through the program of agricultural guarantee, PROGARA, gave coverage to farmers against natural disasters.
IV.-that to continue granting these credits in soft conditions, is necessary and fundamental obtaining resources, so that BFA continue with their management of credit care in a sustainable manner and will continue ensuring the food security of the country and the creation of jobs; resources that can be provided recovery product that has had the FIDEAGRO.
V that being the purpose of the FIDEAGRO to support the agricultural sector and within this sector there are producers who do not have real guarantees that protect their credit requirements, especially against losses due to natural disasters; warranty that may be provided by the trust to micro-producers and through a fund to guarantee the repayment of the credit, without thus weakening the financial situation of the Banco de Fomento Agropecuario.
2 index legislative VI.-that, also in support of the agricultural sector, the FIDEAGRO must have mechanisms that allow effectively rehabilitate those producers who, for various reasons, fell into arrears; but they have shown wanting to meet its credit obligations, since they have sought the way to revive by what becomes necessary to not write off debts, but to seek fair payment agreements, one of them being compute their balances of capital in arrears at a rate that allows them in a dignified manner become eligible for credit and revive their agricultural businesses.
Therefore, use of his constitutional powers and at the initiative of the President of the Republic, by the Minister of agriculture and livestock.
DECREES the following: reforms to the Legislative Decree No. 68 of date 20 July 2000, published in the DIARIO official No. 146, volume no. 348, August 9, 2000 article 1.-insert between the Arts. 7 and 8, article 7-A, in the following manner: article 7-A.-create a guarantee fund which will be used to ensure that micro-producers of basic grains and other micro-agricultural producers requesting funding, from the 2012 harvest, to the Banco de Fomento Agropecuario, up to the amount of three thousand dollars of the United States of America by customer revisable revisable every year by the grantor, in accordance with the third paragraph of this article, which will have an initial capital of three million dollars from the United States of America, that are part of the product of the recoveries from the credits of the FIDEAGRO, which may be increased with the product of recoveries, prior authorisation from the Legislative Assembly.
The guarantee fund referred to in the preceding subsection, will only cover the losses and damages that beneficiaries micro-producers suffer, as a result of natural disasters that have occurred during the term of the loan, which will be quantified by bank supervisors designated for this purpose.
The Minister of agriculture and livestock by Yes or on the proposal of the BFA, established in the first three months of each calendar year, the percentage and maximum amount of appropriations to ensure, as well as the Commission to be paid by the guarantee.
In addition, two million dollars of the United States of America, forming part of the product of the recoveries of the FIDEAGRO loans, will be used to compensate the Banco de Fomento Agropecuario agricultural producers applying for funding from the 2012 harvest the preferential rate on credits granted to micro producers of basic grains and other micro , up to an amount of three thousand dollars of the United States of America; this with the aim of promoting the country's food and nutrition security. This amount will be reviewable by the trustee on a yearly basis or on a proposal from the Banco de Fomento Agropecuario.
3 index legislative elements to which refer to third and fourth paragraphs of this article, as well as the operation of the guarantee fund will be established in an operating regulation approved by the Minister of agriculture and livestock by Yes or on a proposal from the Bank.
Article 2.-authorized to the Executive Body in the field of agriculture and livestock to which by means of its owner or of the person it designates, signed with the Banco de Fomento Agropecuario modification of the writing of the Constitution of the FIDEAGRO, to the effect that adapts the provisions of the present Decree.
Article 3.-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, to the six days of the month of September in the year two thousand twelve.
OTHON SIGFRIDO REYES MORALES, PRESIDENT.
ALBERTO ARMANDO ROMERO RODRÍGUEZ, GUILLERMO ANTONIO GALLEGOS NAVARRETE, SENIOR VICE PRESIDENT. SECOND VICE PRESIDENT.
JOSE FRANCISCO MERINO LÓPEZ, FRANCISCO ROBERTO LORENZANA DURÁN, THIRD VICE PRESIDENT. FOURTH VICE PRESIDENT.
ROBERTO JOSÉ d'AUBUISSON, fifth Vice President.
LORRAINE GUADALUPE PENA MENDOZA, CARMEN ELENA CALDERÓN SOL STEP, FIRST SECRETARY. SECOND SECRETARY.
SANDRA MARLENE SALGADO GARCÍA, JOSÉ RAFAEL MACHUCA ZELAYA, THIRD SECRETARY. FOURTH SECRETARY.
IRMA PALACIOS LOURDES VASQUEZ, MARGARITA ESCOBAR, FIFTH SECRETARY. SIXTH SECRETARIAT.
FRANCISCO JOSE ZABLAH SAFIE, REYNALDO ANTONIO LÓPEZ CARDOZA, SEVENTH SECRETARY. EIGHTH SECRETARY.
Presidential House: San Salvador, at twenty-one days of the month of September in the year two thousand twelve.
PUBLISH, CARLOS MAURICIO FUNES CARTAGENA, PRESIDENT OF THE REPUBLIC.
4 LEGISLATIVE INDEX PABLO ALCIDES OCHOA QUINTEROS, MINISTER OF AGRICULTURE AND LIVESTOCK.
D. OR. No. 177 volume no. 396 date: September 24, 2012 JCH/geg 10-10-2012
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