Page 171 - Caribbean-Central America Profile 2018

EL SALVADOR

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

The following benefits are allowed: Preferences (GSP) scheme and the Caribbean Superintendencia del Sistema Financiero
• Exemption from customs import duties Basin Initiative (CBI), and a member of the 7a Avenida Norte,
(during the first 10 years) machinery, World Trade Organization (WTO). Regionally, No. 240, Apartado Postal #2942
equipment, materials and supplies intended El Salvador is a member of the Central San Salvador, El Salvador
exclusively for pre-investment work and American Common Market, and signatory to Tel: (503) 2281-2444
investment in the construction of the works the Agreement on Central American Tariffs and E-mail: webmaster@ssf.gob.sv
of the plants for electric power generation. Duties. There are approximately 50 commercial Website: www.ssf.gob.sv
• Exemption from income tax for a period of and technical cooperation treaties currently in
five years for projects between 10 and 20 effect, and several of these focus on promoting CENTRAL BANK
Banco Central de Reserva de El Salvador
megawatts (MW), and 10 years for projects co-investment with Guatemala and Honduras. Alameda Juan Pablo II,
of less than 10 megawatts (MW). This provides for free trade within the three entre 15 y 17 Av. Norte.
• Total exemption from taxes on revenues countries, customs standardisation, a common Apartado Postal (106)
directly from the sale of certified emission external duty (SAC) system, free establishment San Salvador, El Salvador
reductions (CERs) under the Clean of bank branches, integration of stock markets, Tel: (503) 2281-8000
Development Mechanism (CDM) or similar and coordination of financial legislation. Fax: (503) 2281-8011
carbon markets. E-mail: info@bcr.gob.sv
El Salvador is a member of the Multilateral
Additionally, those projects over 20 megawatts Investment Guarantee Agency (MIGA) and the NATIONAL STOCK EXCHANGE
(MW) capacity, may be deducted from International Center for Settlement of Investment The Salvadoran Stock Exchange was founded in
income tax (for a maximum period of 10 Disputes (ICSID), and qualifies for Ex-Im Bank February 1992.
years), all expenses or essential costs for and Overseas Private Investment Corporation
research, exploration and development of (OPIC) programs. With a strong commitment Bolsa de Valores de El Salvador
energy generation projects electricity based on to an outward oriented development strategy, El Urbanización Jardines
renewable energy sources, as well as projects Salvador has subscribed free trade agreements de La Hacienda,
total reinjection of the geothermal resource. with the Dominican Republic (1998), Mexico Boulevard Merliot y Avenida
(2000) Chile (2001), and Panama (2002). El Las Carretas, Antiguo Cuscatlán
PROMOTER AGENCY FOR Salvador was also the first country to ratify the La Libertad, El Salvador
EXPORT AND INVESTMENT OF EL Central America Free Trade Agreement (DR- Tel: (503) 2212-6400
SALVADOR (PROESA) CAFTA) with the United States and the first to Fax: (503) 2278-4377
The Promoter of Exports and Investments of El begin implementation on March 1, 2006.
Salvador (PROESA), an autonomous institution, GOVERNMENT
Agency was established by Legislative Decree El Salvador’s Government is Republican,
No. 663 of April 9, 2014. FINANCIAL SERVICES Democratic and Representative. It is divided
The Salvadoran financial sector is home to some into three branches: the Executive (headed
This has been done in order to achieve of the region’s largest banks. The government by the President), the Legislative Assembly,
specialization, coordination, effectiveness and has implemented market-oriented reforms to and the Judiciary. The President appoints the
efficiency in resource utilization. Also, a new encourage competitiveness in the financial members of his Cabinet and his Ambassadors
allocation is assigned to this Agency as system. The market sets interest rates and abroad, while the Chief Justice of the Supreme
designing and promoting the country›s fees for services, and banks can offer services Court and the Legislative Branch appoints other
image as a destination for investment, which using both local currency and U.S. dollars. Justices. The President is elected by popular
seeks to impact the country’s socioeconomic Regulations on banks are open and transparent. vote for a period of five years, the term starting
development. It is important that El Salvador Non-bank financial institutions are limited. and expiring on June 1st.
is positioned at national and international Foreign banks and insurance companies
level in areas such as tourism, culture, sports, receive national treatment. The stock exchange The President may not serve a consecutive
investment, trade, quality of life of citizens, participates in a regional association of stock second term. The latest Constitution was
among others. exchanges. Salvadoran banks offer the same approved by the 84-member General Assembly
on December 20, 1983. Several constitutional
Promoter Agency for Export and Investment services and operations as any bank in the U.S., reforms were approved by Congress as part of
of El Salvador (PROESA) such as savings accounts, certificates of deposit, the negotiations process between the Cristiani
Calle y Colonia La Mascota #316B loans, checking accounts, letter of credit. Administration and the FMLN. Peaceful
San Salvador, El Salvador Services in colones, U.S. dollars, Guatemalan Presidential, Legislative and Municipal
Tel: (503) 2592-7000 elections have been held since 1994.
E-mail: app@proesa.gob.sv quetzals and Honduran lempiras are usually
Website: www.proesa.gob.sv available. Foreign and domestic financial ELECTIONS
institutions operating in El Salvador are regulated Presidential elections were held in El Salvador
TRADE AGREEMENTS by the Ley Organica de la Superintendencia del on February 2, 2014, with a second round held
El Salvador has promoted an open trade policy Sistema Financiero (Organic Law for the Central on March 9, 2014 since no candidate won an
in recent years, in order to achieve a greater Bank of El Salvador). All financial institutions outright majority. The primary candidates were
insertion of its products and services into the are audited, authorised and supervised by the Vice-President Salvador Sánchez Cerén of the
markets of major trading partners. El Salvador Superintendencia del Sistema Financiero, au FMLN, San Salvador Mayor Norman Quijano
is a beneficiary of the Generalized System of autonomous agency. of the ARENA, and Former President Antonio

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