The project aims to facilitate the arrival of foreign investment in the country, but it remains trapped in Congress.
"The law presented by the government is positive. Hopefully this is a good law, but in itself it is not enough. If conditions (such as uncertainty, bureaucracy, etc..) carry on being reinforced, then the law will not help "said Roberto Rubio, from Funde.
El Salvador's Congress could pass a law on road freight transport, regulating permits, routes, itineraries, parking, weight and dimensions of vehicles.
The current draft, soon to be approved by the Public Works Commission, does not include mandatory insurance requirements for third parties.
The 10% increase projected by the government will add to the increased taxes and extortion payments that they are required to pay to criminal gangs.
"... The National Council of Small Business of El Salvador (CONAPES) is urging the deputies of the Legislative Assembly to take into account the financial difficulties which the sector has faced in the last two years," noted an article in Elsalvador.com.
National regulations are to be adjusted to conform to the Association Agreement with the European Union, giving added value to designations of origin or geographical identifications.
From a press release issued by the Legislative Assembly of El Salvador:
An IDB study indicates that delays in the approval of the law on public-private partnerships is jeopardizing private investment.
According to a study by the Economist Intelligence Unit, a project funded by the Inter-American Development Bank (IDB), while El Salvador has made progress in preparations for Public-Private Partnerships (PPPs), delays in the approval of a regulatory framework are jeopardizing private investment.
A bill under study in El Salvador provides for a 10 year exemption on paying income tax for individuals who invest in mutual funds.
The banking sector, through the Salvadoran Banking Association (Abansa), supports the draft legislation which regulates the running and creation of investment funds, but is calling for equal tax treatment.
The Congress of El Salvador is evaluating implementing a tax which would in principle would apply only to LaGeo, a subsidiary of the Italian company Enel.
Against the backdrop of the dispute between the Government and the Italian company Enel over the capitalization of the geothermal LaGeo, "...an ad-hoc committee of the Legislature which is studying the LaGeo concession, the only cmpany with state permission to exploit subterranean heat sources, has proposed a series of amendments to the Electricity Law, including a tax that would be incurred by the activity of the geothermal company. "
In May, the Road Maintenance Fund of El Salvador will issue $50 million in bonds to finance an overpass and maintain several Salvadoran roads.
"The executive director of the Road Maintenance Fund (Fovial), Eliud Ulises Ayala, confirmed yesterday that in May the first $50 million will be issued out of a total of $160 million that the Legislature has approved to raise money to build new roads and maintain the existing network", reported Elsalvador.com.
The Legislative Assembly of El Salvador has started to study the bill, for which it will consult with representatives of financial institutions belonging to the state and the private sector.
A statement by the Legislature reads:
Consultation Phase Begins on Draft Investment Funds Act
The Finance Committee received today the Minister of Finance, Carlos Caceres and other members of the State Financial Cabinet, who had previously submitted the Draft Investment Funds Act, which seeks to generate benefits for small investors and the capital market and channel savings into productive sectors, supporting the growth of El Salvador.
The Superintendency of Electricity and Telecommunications and the Legislature are blaming each other for the project grinding to a standstill.
Elmundo.com.sv reports that "After two years and an equal number of extensions granted by the legislature to the Superintendency of Electricity and Telecommunications (Siget) to implement number portability, the project is still on hold, despite having been a law of the Republic for more than a year. Although the head of the Siget, Luis Mendez, said that for now "everything is in the hands of the Legislature," that organ of state broke ranks from the remarks made by the official.
The Salvadoran government is looking at ways to sell 64 hectares of state property located in the coastal zone of La Union.
According to an article in Elsalvador.com, a decree is being studied by the Salvadoran Congress which could authorize the Salvadoran Tourism Corporation (Corsatur) to sell a plot of land in El Icacal, in the coastal zone of La Union, a pristine beach with high tourism potential.
Seven bills designed to encourage investment are still pending in the legislative committees of finance, treasury, and economy.
Laprensagrafica.com reports that "The Legislative Assembly is about to close the first Legislative month of 2013 without having approved any of the reform initiatives and new laws proposed by the President, Mauricio Funes, to encourage investment. To date, the full Legislature has not yet voted on any of the seven initiatives in the hands of committees of finance, and economics. "
President Funes returned the text of the Act to the Legislature, with observations on five topics covered by the Act.
According to a statement from his office on 8th January 2013:
The President, Mauricio Funes, returned the usury law to the Legislature with observations in five aspects related to the credit market, the stability of operations, the flexibility of the rules, segmentation and timelines for implementation.
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