Guarantee Fund for Salvadoran Exports

The BMI and the Ministry of Economy presented the Export Guarantee Fund (FIDEXPORT).

Friday, October 22, 2010

According to the president of BMI, the FIDEXPORT aims to provide guarantees for short-term financing for export of goods and services required by companies exporting to Financial System institutions in El Salvador.

This fund can support all types of companies applying for exports seeking credit or working capital in order to produce and export goods and services with risk categories A1, A2, B and C1-level financial system.

As for the fund, it will cover up to 70% of the principal balance of credit for advances related to export invoices and 50% coverage of principal balance of credit for export advances related to purchase orders.

For the maximum amount of guarantee on short-term financing related to purchase orders, it will be up to three hundred thousand Dollars (USD $ 300,000.00) for each exporter or group involved.

In case of short-term financing related to export invoices, the maximum amount shall be five hundred thousand Dollars (USD $ 500,000.00) for each exporter or group involved.

But support will come not only in the monetary form, also will be provided to exporters a Commercial Referral Service through reports with information that will give them a better understanding of customers and partners in foreign markets.

Representatives of exporters said they were pleased with this new instrument, fulfilling their expectations.



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El Salvador Removes Import Tariff on Flour

November 2010

The government temporarily suspended the 10% tariff on imports of flour until March 31st.

The Finance Minister, Hector Dada Hirezi, stated, "no additional requirements for the import of flour will be required, any individual or company can import, simply by complying with custom formalities normally required for such operations," published Lapagina.com.sv.

New Export Strategy in El Salvador

October 2010

The country aims to increase its exports to 530 products by 2014.

The new goal is part of an export strategy set by the Government which seeks to replace the current subsidy of 6% (Drawback) for foreign sales.

Capitales.com reports, "Authorities have also set other goals mostly related to increasing the number of export destinations from 52 to 60 and increase the number of exporters with sales greater than $500,000 from 428 in 2008 to 540 in 2014."

$175 Million for Salvadoran Export Sector

July 2010

The government presented its "National Export Strategy" in which it plans to invest $175 million during its five year mandate.

The funds come from the national budget in addition to a $40 million loan from the Inter-American Development Bank (IDB), commented the Secretariat to the Presidency.

El Salvador Officially Eliminates ‘Drawback’

March 2010

The Economy Ministry announced that the ‘Drawback’, a 6% incentive to exporters, will not be paid anymore in 2011.

Exporting companies are working with the government to devise a gradual elimination plan, to be executed this year.

Economy Minister Hector Dada explained that by the end of 2010 the 6% subsidy must be eliminated, because the government assumed the commitment committed to do so in the past.

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