The country's Assembly has agreed to prepare a reform of the Budget Law to use the resources in the Citizen Security Plan.
The institution reported that the resources to be incorporated come from funds pending from the special contributions of the second quarter and from the funds collected in the last quarter, with total resources to be distributed amounting to $22,822,950.
With the aim of boosting the insurance market in El Salvador, business leaders in the sector are proposing changes to the legislation that would allow for expanding marketing channels for policies.
After the Salvadoran insurance market recorded growth of 1% in 2017, bills have been prepared that have been submitted to the Presidential House, which seek to reactivate the sector, through the commercialization of microinsurance focused on people with low incomes.
With the modification of the Free Zones Law, it will now be possible to accumulate up to 25 samples which do not have a commercial value in a single declaration.
Jaime Campos, executive director of the Regulatory Improvement Organization, told Elmundo.sv that the reform "...'will help the investment climate in the country' because the reform introduces the concept of the 'accumulated goods declaration', which will allow imports or exports of up to 25 samples in a single declaration."
Salvadoran bankers warn that the reform of the Bank Law proposed by the government would reduce controls on money laundering, since banks would only be able to close accounts with a previously aquired official resolution.
The president of the Salvadoran Banking Association (Abansa), Raul Cardenal, stressed that "... the reform project aims to ensure banks have no power to close bank accounts, without just cause and without a prior judicial or administrative resolution issued by the General Prosecutor's Office of the Republic."
The law reform proposal put forward by the private sector includes the establishment of fiscal rules and multiannual budgets, among other changes.
The National Association of Private Enterprise (ANEP) explained that this initiative is part of a first phase of proposals that will be presented to the Sánchez Cerén administration in the coming months.
Among the changes contemplated in the reform to the Pension Law approved by the Congress is a reduction in the administration fee charged by the AFPs, from 2.2% currently contributed by the employer to 1.9% of the Base Income Quotation.
The reform of the Pension Law was eventually approved, generating positive reactions from the business sector, which praised the way in which government deputies and the opposition managed to reach an agreement, after months of extreme polarization.
Allowing up to 30% of pension fund portfolios to invest in foreign securities is one of the changes included in the law reform bill proposed by the private sector.
The Citizens' Initiative for Pensions (ICP) introduced a draft amendment to the Law on Savings System for Pensions and other related laws, such as the pension obligations trust (FOP by its initials in Spanish) to the Assembly.
The government is proposing reforming the law of the Road Maintenance Fund to increase the tax levied per gallon of fuel from $0.20 to $0.37.
The Technical Secretary of the Presidency, Roberto Lorenzana, presented the proposal to the Assembly, arguing that"... it responds to the fulfillment of the commitment of the government to Fomilenio II for the disbursement of $106 million, $277 million that the US will hand over to the country."
Concessions for the exploitation of hydraulic and geothermal resources will be granted for a maximum term of 30 years and not permanently.
From a statement issued by the Legislative Assembly of El Salvador:
With 58 votes, parcial approval was given to the Ad Hoc Committee established to study the implications of the judgments of the Constitutional Chamber of the Supreme Court on the unconstitutionality of some articles in the General Electricity Law and its regulations and the Telecommunications Act.
The construction union estimates that if approval is given to the reform bill to streamline and simplify procedures, it will take 30 days to obtain a permit.
The Salvadoran Chamber of the Construction Industry (Casalco) proposes amending the Special Law for Streamlining Procedures for Construction Project Development and improving the current timeframes for obtaining building permits and environmental certificates.
Government control over the allocation of concessions and the lack of antitrust rules have set alarm bells ringing for companies in the sector.
The Legislature will have only the three months granted by the Constitutional Court, from now, in order to make amendments to the Law on Telecommunications (LT).
Meanwhile, the Salvadoran Foundation for Economic and Social Development (FUSADES) studied the Draft Law on Community Broadcasting of the Legislative Assembly and the draft Law on Public Media submitted by former President Mauricio Funes, September 19 2013, both are projects which come under the Telecommunications Law.
The Superintendent of the Financial System has started monitoring the operations of companies that send and receive remittances.
With the law reform passed by the Assembly, legal persons performing operations to systematically send or receive money or substantial amounts, by any means, at national and international level, will be supervised by the Superintendency of the Financial System.
Reforms have been made to the Law on Privatization of Mills and Alcohol Plants to give a three year extension to the timeframe for selling shares of mills owned by the Salvadoran Investment Corporation.
From a statement issued by the Legislative Assembly of El Salvador:
The Legislature approved on Wednesday, with 44 votes, an amendment to the Law on Privatization of Mills and Alcohol Plants in order to extend for three years the period for the Salvadoran Investment Corporation (CORSAIN), to sell shares of some mills that were subject to privatization and are still owned by them.
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% ..