A request has been made for the law against money and asset laundering to meet international standards, a condition required to obtain funds from FOMILENIO II.
The Salvadoran Foundation for Economic and Social Development (FUSADES) requested that the Legislature take into account the reforms recommended by the Caribbean Financial Action Task Force (Gafic) to the Anti-Money and Asset Laundering law, as it is a condition required by the U.S.
FUSADES is asking the Salvadoran Congress to make reforms to the Special Act on Public-Private Partnerships in order to ensure its effectiveness.
The Salvadoran Foundation for Economic and Social Development (FUSADES) is refering to the reforms that have been put forward by the ARENA party which among other things suggest that the Agency for Promotion of Exports and Investments of El Salvador (PROESA) be in charge of monitoring the administration of the law. The recently passed legislation "includes a new administrative institution: the Directorate of Public-Private Partnerships", reported Laprensagrafica.com.
Academics and politicians are proposing an intersectoral agreement from which comprehensive tax reforms can arise in order to make public finances sustainable.
According to an article in Elmundo.com.sv, "The forum called 'Are Public Finances sustainable?', brings together economists and two deputies from the Special Committee on Finance and Budget of the Legislative Assembly to discuss and present their proposals for solutions to the current fiscal situation.
A whole group of new services based on new technologies are not covered under the current Law on International Services.
The Salvadoran Foundation for Economic and Social Development (Fusades), is proposing amending the current law, so as to incorporate new services and update existing ones. It also proposes setting up a commission on international services which are responsible for maintaining the information.
The Salvadoran Foundation Fusades has warned that if tax reforms are not accompanied by cuts in public spending they will have a negative impact on employment and investment.
A press release from the Salvadoran Foundation for Economic and Social Development reads:
The fiscal situation is critical and unsustainable. From 2007 to 2011 the total public debt rose from 43% to 56% of GDP, spending grew due to widespread increases in benefits and wages, while investment declined. The path to correct the fiscal situation was detailed in the "Stand-By Agreement" between the Government and the International Monetary Fund (IMF) in 2010, which the country must comply with.