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."
The BMI and the Ministry of Economy presented the Export Guarantee Fund (FIDEXPORT).
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.
Exporters are concerned that the government's $175 million investment in the sector will not make up for the loss of incentives.
El Salvador's Corporation of Exporting Companies, known as COEXPORT, believes the impact on the export sector of the $175 million government investment plan will be minimal.
Francisco Bolaños, president of COEXPORT, told Laprensagrafica.com that, "according to our calculations, the employment bonus will cover around 4,000 jobs while job losses are in the region of 28,000. This is an example of where the budget falls short. Let's remember that the main aim is to create jobs and this is why much more is needed".
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.
The presentation made no mention of how much the annual investment will be.
In January 2010 the Salvadoran Government will present its new policies for fostering exports and investment.
The plan includes the creation of a development banking system, in which the Multi-sector Investment Bank would be used to make public credit available to the productive sectors.
"As for the policies fostering exports and investment, ... he said that the current draft includes administrative and credit measures, as well as tax incentives and support for modernizing and innovating", reported Elsalvador.com.
Exporting companies from El Salvador are demanding an integral exports policy from the Government.
According to the Corporation of Exporting Companies, known as COEXPORT, the most important items of such policy should be a financial guarantee fund and credit insurance.
Silvia Cuéllar, head of Coexport, detailed both financial instruments to Laprensagrafica.com: "Credit insurance will be a guarantee for exporters having problems with their products, and the guarantee fund will provide greater protection for the entrepreneur".