The reduction from 20% to 3% in the tax on stock profits was not enough to prevent trading on the secondary market in the first quarter of the year falling by 94%.
On January 26, the Ministry of Finance will be auctioning in the local stock market $25 million in Treasury bills with maturities of between 316 and 346 days.
From a statement issued by the Stock Exchange of El Salvador:
The Development Bank of El Salvador will be issuing in the primary market $5 million in commercial papers with five months maturity.
From a statement issued by the Stock Exchange of El Salvador:
Bandesal through the brokerage house Valores Banagrícola, will be selling in the primary market tranche "4" of its securities issuance, according to the following characteristics
On June 5th the Development Bank of El Salvador will auction on the stock exchange $10 million in commercial papers with a maturity of one year.
From a statement issued by the Stock Exchange of El Salvador (BVES):
Issue Date: June 5, 2015 9:15:00 am
Institution: DEVELOPMENT BANK EL SALVADOR
Description:
Bandesal through the brokerage house Valores Banagrícola, will sell in the primary market tranche "3" of its securities issuance, according to the following characteristics
The government has placed on the international market an issue due 2027 at a coupon of 6.375%, with offers that exceeded the amount placed by 5.8 times.
From a statement issued by from Presidency of El Salvador:
(Thursday 11 September) the Republic of El Salvador made a successful placement of sovereign bonds (Eurobonds) in the international market to the tune of $800 million, covered by Legislative Decree No.
A potential tax on financial transactions would discourage investment in the stock market as securities would be taxed each time they are traded.
In light of a tax proposal that would tax at 0.25% per $750 all kinds of securities, including repos and securitizations, the Stock Exchange of El Salvador (BVES) has expressed its concern for contracts already traded on the market and its dampening effect on investment.
According to Standard & Poor's, the increase in transactions of covered bonds is strengthening financial markets in the region.
From an article by Standard & Poor's:
"Central America: New Transactions Could Bolster Performance"
"Panama's dormant yet sophisticated residential mortgage market witnessed some activity in 2013. After more than two years since the last placement, a new RMBS transaction was placed in the local market in 2013 for US$45 million, with the underlying collateral comprising residential mortgage loans in El Salvador. Historically, most securitizations have been locally placed, with just a few cross-border transactions.