Tuesday, 22 June 2021 13:27

Vice Minister of Finance presented financing requests and legislative decree reforms before the Finance Commission

Written by Alondra Gutiérrez

During the Treasury Commission, the legislators approved by majority the reform to Legislative Decree No. 608 and No. 804, which allow the Ministry of Finance to manage credits in order to guarantee more resources for the country and face the Covid-19 pandemic.

During the Finance Commission, the Vice Minister of Finance, Jerson Posada expanded the information related to the files of this Ministry that will be studied by the parliamentarians among which are:

  • Financing requests
  • Amendments to Legislative Decrees
  • Amendments to the Budget Law 2021

The Vice Minister of Finance explained to the deputies during the Finance Commission the financing requests among which are:

  • US$109 million for Phase III of the " Plan Control Territorial ".
  • US$100 million for the Programa de Mejora de la Calidad y Cobertura Educativa: Nacer, Crecer, Aprender. The purpose of the financing is to improve the quality and coverage of education in El Salvador.
  • 20 million for Programa Global de Crédito para la Micro y Pequeña Empresa (MYPE). The purpose of the program is to promote sustainable productive investment to improve income and access to markets by granting loans to agricultural MSEs.

With the following financing, according to the Vice Minister, Jerson Posada, the objective is to strengthen the national system for public health preparedness in El Salvador.

He also said that another of the requests is for US$50 million for the El Salvador Covid-19 Response Project, with the objective of responding to and mitigating the threat posed by the virus.

Vice Minister, Jerson Posada, explained that the proposed amendment to Legislative Decree 608 to give back to the Ministry of Finance the power to contract credits would allow the country to have more resources to face the Covid-19 pandemic.

Likewise, the legislators approved by majority the amendment to Legislative Decree N°804 which authorizes the Ministry of Finance to manage credits of up to US$138.7 million for the complementary financing of the General State Budget 2021 and to Decree N°608 which allows to return the power to the Ministry of Finance to contract credits that will allow the country to have more resources to face the Covid-19 pandemic.

Also, the deputies issued favorable opinions to the following initiatives:

  • Extraordinary Budget 2021-2022, to finance the " Proyecto de Respuesta de El Salvador ante el Covid-19", in the amount of US$20 million, to be executed by the Ministry of Health.
  • Financing of up to US$20 million for the " Programa Global de Crédito para la Micro y Pequeña Empresa (MYPE) en El Salvador " signed between the Banco de Fomento Agropecuario (BFA) and the Inter-American Development Bank (IDB).