El Salvador: Less Options for Resolving Fiscal Problem

The inability to carry out the issuance of $900 million further limits the possibilities of solving the fiscal problem affecting the country.

Thursday, July 14, 2016

The Sanchez Ceren administration had intended to use the proceeds to refinance debt, pay pensions of officials and allocate funds to the Ministry of Education, according to the explanation given by the authorities at the Ministry of Finance.

From a statement issued by the Constitutional Chamber:

The Court has declared a decree of nine hundred million dollars as unconstitutional for defrauding the Constitution and by means of a vote by deputies in a judgement issued this day, the Chamber declared the legislative decree unconstitutional by which the Legislature authorized the Executive Branch in the Field of Finance, to issue credit securities of up to the amount of $900 million, because it contravenes Article 131 ordinal 4 and 148 paragraph 2 of the Constitution; the aforementioned, not having justified the request made by acting deputies and because the decree was approved by people who have not been elected by the people. 

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