Key Benefits:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR
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DECREE NO 120
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
CONSIDERING:
I.-That by means of grant agreement, project of AID Nº 519-0307 dated July 31, 1986 and signed between the Government of the Republic of El Salvador as a donor and the government of the The United States of America, through the International Agency for Development AID, in its capacity as donor, the Government of El Salvador was favored with a donation of about fifty million dollars from the United States of America, to benefit different social, infrastructure and investment projects, funds that have been managed by the Central Reserve Bank of El Salvador;
II. 1996, of the total amount of the agreement described above, the Central Reserve Bank of El Salvador granted in quality of mutual assistance to the Multisectoral Investment Bank (BMI), an amount of one hundred and seventy-six million colones, broken down as follows: Noventa and three million eight hundred thousand colones for the financing of permanent crops in new areas; and eighty-two million three hundred thousand colones for the financing of projects of recovery and conservation of the environment and financing for the planting of forest crops;
III. viabilize and materialize financing for recovery and conservation projects in the environment, as well as for the planting of forest crops, the Central Reserve Bank created the line of the FOCAM Environmental Credit Fund, which would be granted and managed by the BMI, through which the interested in sowing these crops could access the funds;
IV.-That the conditions established for the granting of the credits to finance the planting of forest crops were clearly defined in the grant agreement with their corresponding implementation letter identified in the First and Second Recital, which by their favorable characteristics, including deadlines, interests, grace period and others, became a motivation for a group of foresters to embark on afforestation projects;
V.-That the situation generated by the the reasons described in the recital above, and without any responsibility, the group of foresters who acquired credits through the FOCAC, began to be affected and threatened by embargo processes, which in many cases were executed by the financial institutions, with some of them still in problems of a legal nature to be aired in the relevant courts;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR
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VI.-That by Legislative Decree No. 263, dated March 23, 1998, the Special Law to Facilitate the Cancellation of Agrarian and Agricultural Deures was approved, a regulation that within its objectives is to contribute to the reactivation of the agricultural sector, in order to convert the debtors in the sector, in credit with the Financial System, by means of the mechanism of early payment of 10% of the total debts of the beneficiaries, remaining cancelled 90%;
VII.-That for its stoicity, tenacity and Above all in the desire to do justice to this union that has contributed in a great way to the conservation of our environment so deteriorated, it is considered imperative and necessary to incorporate them in the benefits that the Special Law for the Cancellation of the Agricultural and Agricultural Deures indicated in the recital above, grants this sector, especially for those who, however, have continued with the development of their projects, as long as they see that the Funds acquired from the Financing of Forestry and Forestry Works of Recovery and Conservation of the Environment, within the FOCAM Environmental Credit Fund, have been used for this purpose.
BY TANTO,
in use of its Constitutional powers and at the initiative of the Deputies Mario Marroquín Mejía, Orestes Fredesman Ortez Andrade, José Francisco Merino López, Irma Lourdes Palacios Vásquez, Blanca Noemi Coto Estrada, Francisco Roberto Lorenzana Duran, Manuel Vicente Menjivar Esquivel, Roberto José d' Aubuisson Munguía, Eduardo Enrique Barrientos Zepeda, José Serafin Orantes Rodríguez, Francisco José Zablah Safie, Douglas Leonardo Mejia Avilés, Karla Gicela Abrego Cáceres, Hector Antonio Acevedo Moreno, Yohalmo Edmundo Cabrera Chacon, Dario Alejandro Chicas Argueta, Jose Alvaro Cornejo Mena, Carlos Cortez Hernandez, Luis Alberto Corvera Rivas, Nery Arely Diaz de Rivera, Santiago Flores Alfaro, Ricardo Bladimir González, Benito Antonio Lara Fernandez, Hortensia Margarita Lopez Quintana, Audelia Guadalupe Lopez de Kleutgens, Mildred Guadalupe Machado Argueta, Guillermo Francisco Mata Bennett, Ana Virginia Morataya Gomez, Yeymi Elizabeth Munoz Moran, Jose Margarito Nolasco Diaz, Guillermo Antonio Olivo Mendez, Gilberto Rivera Mejia, Jackeline Noemi Rivera Avalos, Jose Mauricio Rivera, David Rodriguez Rivera, Sonia Margarita Rodriguez Siguenza, Karina Ivette Sosa de Lara, Jaime Gilberto Valdez Hernandez, Maria Margarita Velado Puentes, Ana Daysi Villalobos de Cruz, Carlos Mario Zambrano Campos, Gloria Elizabeth Gomez de Cruz Salgado, Rodolfo Antonio Parker Soto, Mauricio Ernesto Rodriguez, Felix Agreda Chachagua, Federico Guillermo Avila Quehl, Valentin Aristides Corpeno, Cesar Rene Florentin Reyes Dheming, Margarita Escobar, Julio Cesar Fabian Perez, Guillermo Antonio Gallegos Navarrete, Eduardo Antonio Gomar Moran, Jose Nelson Guardado Menjivar, Carlos Walter Guzman Coto, Jaime Ricardo Handal Samayoa, Juan Carlos Hernandez Portillo, Osmin Lopez Escalante, Rafael Ricardo Moran Tobar, Rafael Eduardo Paz Velis, Dolores Alberto Rivas Echeverria, Abilio Orestes Rodríguez Menjivar, Alberto Armando Romero Rodriguez, Marcos Francisco Salazar Umana, Patricia Maria Salazar Mejia, Rodrigo Samayoa Rivas, Misael Serrano Chavez, Manuel Rigoberto Soto Lazo, Enrique Alberto Luis Valdes Soto, Mario Eduardo Valiente Ortiz, and Jose Orlando Arevalo Pineda.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR
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DECCRETA:
The following Reforms to the Special Law to Facilitate the Cancellation of Agricultural and Agricultural Deures, contained in Legislative Decree No. 263 dated March 23, 1998.
Art. 1.- Reform Art. 1 as follows:
" Art. 1. The purpose of this Law is to contribute to the reactivation of the agricultural sector by adjusting the loans to their present value, and the establishment of the financial mechanisms that will allow the cancellation of the debts owed by the The beneficiaries of the Agrarian Reform Institute (ISTA) and the National Agricultural Land Finance (FINATA) are the beneficiaries of the Agrarian Reform for the Land and the beneficiaries of the Agrarian Reform. Transfer of Land and other users in favour of the Land Bank in liquidation; and those of the Carteras Loans from the Agricultural Sector of the Agricultural Development Bank and Special Trust of the Agricultural Sector, hereinafter referred to as BFA and Fideagro, respectively; of the Financing Fund for the reactivation of productive activities, hereinafter called FFRAP; and of the Fund of Sanitation and Financial Strengthening in the hereafter called FOSAFFI; and in addition the debts of the original users of the Carteras of Loans managed by the different Financial Institutions, for the financing of projects for recovery and conservation of the environment Environment and financing for the planting of forest crops, from the so-called Forest Crop and Recovery and Conservation of the Environment Facility, within the Environmental Credit Fund. (FOAM) created by the Central Reserve Bank of El Salvador and transferred by mutual loan to the Multisectoral Investment Bank (BMI), in the amount of 82.3 million colones, Funds arising from the grant agreement, project AID Nº 519-0307, as amended by Implementing Letter No. 39 of 20 February 1996; to convert all related debtors into credit subjects with the Financial System. "
Art. 2.- Add a literal d) to Art. 2, as follows;
" d) Users of the Loan Portfolio managed by the various Financial Institutions, including FOSAFFI, whose funds come from the credit line created by the Central Reserve Bank and called the Forestry and Recovery and Conservation of the Environment Facility, within the FOCAM Environmental Credit Fund, which were used to finance seed projects. forest crops, in the amount of eighty-two million three hundred thousand colones and that were broken down for this purpose of the grant agreement, project AID Nº 519-0307, of the year 1986 and modified for the purposes described, by letter of implementation No. 39 of February 20, 1996; provided the credits contracted by those users for this purpose, have been granted as a maximum date until December 31, 2002, and are with a default of no less than ninety days at the time of the entry into force of this decree; and they also show that they are appropriations were used for this purpose. In order to verify that the aforementioned credits have been used for the planting and cultivation of forest areas, the Directorate-General for Forest Management, Watersheds and Irrigation of the Ministry of Agriculture and Livestock will have to participate; institutions that currently handle the Portfolio of such credits, and the user of such credits; the Directorate being responsible for issuing the resolution establishing whether the credit granted was used or not for the purposes described.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR
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Art. 3.- Reform the first paragraph of Art. 8, as follows:
" Art. 8. For the purpose of applying this Law, it will be understood as credits to the agricultural sector, those granted to finance investments and working capital for the following activities; (a) Agricultural and livestock farming; (b) Non-industrial Artisanal fishing until one hundred thousand colons, in the case of credits granted to individuals on an individual basis; and up to five hundred thousand colones, if the credits are granted collectively; (c) aquaculture projects; (d) Credits granted for financing works for the recovery and conservation of the environment, as well as for planting crops (e) loans granted for the payment of debts whose origin or destination was the financing of an agricultural or livestock activity; and (f) the refinancing of the credits mentioned in this paragraph.
Art. 4.- Reform the third paragraph of Art. 17 as follows:
" The Agricultural Development Bank shall establish a financing scheme within eight years, with a grace period of two years and an interest rate of 8% per year. on balance, for those natural or legal persons in the agricultural sector whose credits were allocated for the production, processing and marketing of agricultural products; for the planting of forest crops developed by the line of Financing of Forest Crops and Recovery and Conservation Works of Environment FOCAM; as well as those credits that were granted for the payment of debts whose origin or destination was the financing of an agricultural activity, and which are classified in categories d) and e) at the entry into force of the In addition, the aforementioned bank is authorized to grant credits for the cancellation of 10% of the debts owed to FOSAFFI under the conditions set forth in Art. 4 of this law, to the persons who request it.
Art. 5.- This Decree shall enter into force eight days after its publication in the Official Journal.
GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the eighteen days of September of the two thousand nine.
CRUZ ZEPEDA PENA, PRESIDENT.
OTHON SIGFRIDO REYES MORALES, GUILLERMO ANTONIO GALLEGOS NAVARRETE, FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.
JOSÉ FRANCISCO MERINO LÓPEZ, ALBERTO ARMANDO ROMERO RODRÍGUEZ, THIRD VICE PRESIDENT. FOURTH VICE-PRESIDENT.
FRANCISCO ROBERTO LORENZANA DURAN, FIFTH VICE PRESIDENT.
LORENA GUADALUPE PEÑA MENDOZA, CESAR HUMBERTO GARCIA AGUILERA, FIRST SECRETARY. SECOND SECRETARY.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR
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ELIZARDO GONZÁLEZ LOVO, ROBERTO JOSÉ D' AUBUISSON MUNGUIA, THIRD SECRETARY. FOURTH SECRETARY.
FIFTH SECRETARY, IRMA LOURDES PALACIOS VÁSQUEZ, VACANT. SIXTH SECRETARIAT.
MARIO ALBERTO TENORIO GUERRERO, SEVENTH SECRETARY.
NOTE:
In compliance with the provisions of Art. 97, of the 3rd paragraph of the Rules of Procedure of this State Body, it is stated that this Decree was received on 7 October 2009, with observations by the President of the Republic, resolving this Legislative Assembly to accept these observations in the Plenary Session of the day thirteen of January of this year.
CESAR HUMBERTO GARCÍA AGUILERA Second Secretary
LEGISLATIVE ASSEMBLY: San Francisco Salvador, at twenty-eight days of February of the year two thousand eleven.
Pursuant to Art. 139 of The Constitution
PUBESQUIESE,
OTHON SIGFRIDO REYES MORALES PRESIDENT OF THE LEGISLATIVE ASSEMBLY
D. O. No. 42 Took Nº 390 Date: March 1, 2011
JCH/adar 21-03-2011
