El Salvador to Issue $2 Billion in Debt

In order to face the health crisis, the Assembly authorized the issuance of securities for up to $2 billion, which will be issued in the national or international market.

Friday, March 27, 2020

According to the motion, 70% of the funds obtained will be used, as a priority, to attend to the health emergency and may be allocated to the fund for direct monetary transfers to economically vulnerable households, to cover the income shortfalls in the current budget, generated by covid-19 and to incorporate the resources into the General State Budget 2020, informed the Legislative Assembly.

See "Post-Quarantine Consumption Patterns"

The statement adds that "... A liquidity fund for micro, small and medium enterprises affected by the emergency should also be implemented to finance agricultural producers of basic grains and the agricultural sector in general. In addition, resources should also be allocated to a subsidy program for the payment of payrolls to employees affected by the declaration of a national emergency and quarantine and its effects."

The remaining 30% will be allocated to municipal governments to develop projects. These funds will be transferred directly to the municipalities, according to the criteria established in the Fund for Economic and Social Development of Municipalities (FODES), the Assembly explained.

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