President Sanchez Ceren has passed a Special Law Against Crime Extortion, which aims to improve the fight against the unfortunate practice which primarily affects the business sector.
From a statement issued by the presidency of El Salvador:
The president, Salvador Sanchez Ceren, has sanctioned Legislative Decree No. 953 containing the Special Law Against Crime Extortion, proposed by the government to streamline the prosecution of this crime.
The Legislature has passed a law authorizing the Attorney General to carry out investigations on its own initiative, without the need for a formal complaint.
From a statement issued by the Legislative Assembly of El Salvador:
The National Assembly unanimously passed the Special Law Against Crime Extortion, which will toughen criminal and procedural sanctions, as well as administrative measures for the prevention, investigation, and prosecution of the crime of extortion.
Financial companies expect that sometime before March 30 regulations of these investment instruments whose law was passed last year will be published.
It is expected that in the second half of the year the first fund management companies will be operating, once the legislation being prepared by authorities for the financial market is made known in detail.
In three years only 27,000 out of 350,000 properties have been registered and titled due to the excessive bureaucracy processes which need to be carried out in municipal entities.
The Lotificadores Association of El Salvador (Alles) has revealed that are approximately 15 articles of the Special Act on Subdivisions which must be modified in order to reduce the number of procedures to be carried out to legalize land parcels.
The government is preparing a decree that aims to regulate production and discover how much product is acquired by basic grain traders and where they store it.
The decree, which will come into effect in the month of February, is focused on finding out numbers and details related to the production of maize, sorghum, beans and rice, and companies who market them, who will have to provide information about the entire marketing process, from purchasing the product, its existence, volumes, and information on major retail centers.
The government has pointed out that the amendments to the Law of the Salvadoran Coffee Council do not include a new tax, but rather a change in the retention rate of $0.35 per hundredweight exported.
From a statement issued by the Ministry of Agriculture and Livestock in El Salvador (MAG):
The government of the Republic stoutly denies that it has created a new tax on coffee production and reiterates its commitment to this important economic sector, in which the 2004-2015 crop already exceeds the previous one.
A request has been made that the interest rate paid by the government for using funds from the Pension Trust Bond rise from 1.3% to 7.5%.
Elsalvador.com reports that "... The leaders of the Committee requested yesterday that a new article specifically state that pension funds earn the passive base interest rate used for investments of 180 days and published by the Central Bank plus 3.5% ..
The Law on Legal Stability for Investments has been approved, which aims to improve confidence in the country preventing changes to incentive schemes granted to foreign companies.
From a statement issued by the Legislative Assembly of El Salvador:
Legislative Plenary approves Legal Stability Law for Investment
This is another important step forward in the legislative endeavor, as with this approval legal stability is granted to entrepreneurs who decide to invest in the country. Using this tool, legislators will be able to give domestic and foreign businessmen, certainty that, once their investment project is approved, no one can change the rules of the game.
Developers claim that the law streamlining procedures adopted in 2013 is not being enforced by state institutions, which continue to impede investment in the sector.
According to representatives of the builder's guild, there are some private and public projects, all medium-term in the area of homes and businesses, which could not be executed because of the amount of bureaucratic processes that are still pending.
A bill introduced by the government intends to streamline access to the Panamanian market for foreign companies in the provision of maritime auxiliary services.
Excerpted from the bill introduced by the government of Panama:
Law 41 of June 14, 2013, through which reform is made to Law No. 8 of 1998 is amended by Decree, Act 56 of 2008 and Act 57 of 2008 which dictates other provisions on the work at sea and on waterways, significantly restricting access to the Panamanian market to foreign investors in the provision of maritime auxiliary services in the Republic of Panama.
Reports have been made in El Salvador of potential conflicts between the provisions governing the pledge agreement in Civil and Commercial Code and the Law on Secured Transactions.
In an opinion piece published in Laprensagrafica.com, the Center for Legal Studies states that "... The doubts arise from the basics. There is no categorical position on the fate of the provisions governing the pledge agreement in Civil and Commercial codes.
The law establishes a framework for the supervision of investment funds, fractional shares, management companies and the registration and marketing of foreign funds.
From a statement by the Legislative Assembly of El Salvador:
During the plenary session on Thursday the Investment Funds Act was unanimously approved, an act which aims to generate profits and stimulate economic activity by providing small investors with access to capital markets, diversification of investments and channeling savings into productive sectors, so as to contribute to higher economic growth.
The new Sanchez Ceren administration will discuss the theme, including the option of going back to the system of pensions being managed by the State.
An article on Elsalvador.com reports on the differences in the results obtained from the present system where private administrators manage the funds that workers contributions are paid into with respect to the debacle that occurred when the system was operated by state institutions such as the National Institute of Pensions of Public Employees (INPEP) and the Salvadoran Social Security Institute (ISSS).
The industry claims that the law streamlining procedures is not being implemented in all institutions involved in the permitting process.
The law which aims to reduce the time it takes to gain authorization for medium and long term real estate projects from 880 days to 175 days, is not being applied equally by state entities.
Carlos Guerrero, president of the Salvadoran Chamber of Construction (Casalco) said in an article on Laprensagrafica.com ".... 'Importance has not been given to this law. There are many (government) institutions that are not complying with it.'"
The private sector demands limits on the government's ability to borrow, through means of a Fiscal Responsibility Law.
From a press release issued by the Chamber of Commerce and Industry of El Salvador (Camarasal):
The Camarasal has expressed dissatisfaction with the fact that the Legislature has authorized the government to issue a new bond debt for $1.156 million, without having first limited the state's debt capacity through the adoption of a Fiscal Responsibility Law.