Development Banking Law Approved in El Salvador

The new Financial System Law to Promote Development aims to promote, with financial and technical support, development of investment projects.

Friday, September 23, 2011

A press release from the Legislative Assembly of El Salvador reads:

The Legislative Assembly approved on 22 September 2011, with 78 votes, 103 items that make up the new Financial System Law for the Promotion of Development, which aims to promote, with financial and technical support, the development of viable and profitable investments in the country’s productive sectors.

Under the new rules, the Multisectoral Investment Bank, will be transformed into a new lending institution with powers and responsibilities for the Development Banking System, which will seek to provide financial support to public sector policies in order to promote development of micro, small and medium enterprises , and in this way, strengthen the country’s economic and social development.

"Without doubt, this law will become, not only a more transcendent law, but one of the most transcendent laws of this legislature, it is a law that poses structural changes to the country, in a sector as important as the financial industry, as this is related to credit, providing access to money for the people, especially those in need of resources to start a business, ... this is the enormity of this law", said independent MP Orlando Arévalo.

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