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Latin America Investment News on Viva Tropical

El Salvador Aims for Productive Use of Remittances

Article Summary:

The Bridge Project is an initiative of the U.S. Department of State and the Association for Growth, which plans to make better use of remittances sent home by Salvadorans living abroad.

Photo Credit: Revista Summa

Original Article Text From Revista Summa via Google Translate :

Bridge Initiative Of El Salvador Look for Security Remittances To Finance Infrastructure

The Bridge Project is an initiative of the Department of State of the United States and is now part of Asocio for Growth. Looking to make better use of remittances sent home by Salvadorans living abroad to their families, through the financial system.

Were chosen initially to several Latin American countries including El Salvador, “and our country was better than had to start the pilot program because private banks already have experience in the securitization of remittances,” the technical secretary Alexander Segovia . “This initiative aims to make more profitable use of remittances flow through securitization and create a fund to be managed by one or two banks operating in the country,” he said. With this fund can finance large infrastructure projects in sectors like power, connectivity or other large strategic project. The government hopes to incorporate these projects I associate the figure of the Public Private, and through this mechanism, implement the modernization of the airport on metropolitan public transport system, tourism projects, energy and also develop private projects.

“To this end there will be a call for private investors to explain the operating mechanism of this initiative”, said Alexander Segovia.

This securitization would have the backing of U.S. agencies and international banks to provide greater security and more credibility, the government official said.

“If we add the Development Bank, other initiatives and reforms to laws we are creating the conditions to break this vicious cycle that slows growth,” said the technical secretary.

He also announced that the Council for Growth has instructed technical teams to prepare a comprehensive reform of various laws to encourage investment, which is to facilitate investment and prompt attention.

In addition, Alexander Segovia reveals that working on the proposed establishment of security contracts and legal stability, such as exist in other countries such as Colombia and Chile, “where an investor signs a contract with the government and legal investment investment is protected, give assurances that the minimum initial investment is maintained during the course of the investment, “he describes. 2This is part of the overhaul of the institutional framework for promoting private investment, “said the headline.

All these instruments is added also the grant of the Port of La Union for the second semester. “Overall we believe the economy will begin to improve significantly in the year 2012″, highlights the technical secretary of the Presidency.

Support in the U.S.
The technical secretary of the Presidency, Alexander Segovia, describes 2012 as strategic for economic and social management. “This is the year where they initiate or culminate processes and initiatives that will contribute in a major way to break the vicious circle of low growth and low investment,” the official said.

With the U.S. government is driving several initiatives such as the Asocio for Growth initiative Fomilenio II and Bridge. Meanwhile, the Government is also working on a series of reforms of laws to facilitate investment, as the reform of the Free Zones Act, the law of public asocios private international law services and analyzes a series of measures to increase incentives to attract more domestic and international private investment.

Link to Original Article:

From Revista Summa

Latin America Investment News on Viva Tropical