A. M. 
The Legislative Assembly approved the authorization for the Executive Branch, through the Ministry of Finance, to issue debt securities for up to US$344 million, with the aim of strengthening the State’s financial capacity and ensuring the continuity of social, environmental, and economic programs considered strategic for national development. The decision was supported by 57 deputies during the plenary session.
With this authorization, the Government may place the securities in the national or international market, depending on the most favorable financial conditions at the time of issuance. The funds obtained will be used to cover general State obligations and support priority projects that seek to promote improvements in infrastructure, public services, and social development.
The securities will have returns subject to market performance and may be issued at a discount or premium according to international financial practice. While their face value and returns will be tax-exempt, capital gains derived from their purchase or sale will be taxed in accordance with current legislation. Issuance may be medium- or long-term, with payments in installments or in a single payment at maturity.
The Ministry of Finance will have the authority to carry out liability management operations, including debt reorganization or refinancing, provided that such actions are beneficial to the country. A Financial Agent Agreement will also be signed with the Banco Central de Reserva (BCR), which will act as an intermediary in the structuring and execution of the placements. For issuance in international markets, the Ministry of Finance may register with the United States Securities and Exchange Commission (SEC) or use procedures under Regulations 144A or S.
The regulations also allow for the hiring of investment banks, advisors, and specialized agents for the placement of the securities. Their services will be tax-exempt, including VAT, although the corresponding withholding taxes will still apply if the service providers are domestic companies. The Ministry will cover the costs associated with the process, including procedures with the SEC and the Autoridad Regulatoria de la Industria Financiera (FINRA).
With this measure, the Government seeks to ensure liquidity to sustain the functioning of the State, maintain public investment, and advance initiatives aimed at strengthening the country’s economic and social growth.
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