On October 4, 2022, the Legislative Assembly approved a new Fire Department Law for El Salvador. The purpose of the law is to modernize the fire department, giving it more institutional independence to enable a faster response to an emergency. This law implements an Ad-Valorem tax of 5% on the contracting, extension, renewal, or modification…
Category Archives: El Salvador
Blog, El Salvador, Labor & Employment, News
Reform to the Labor Code increase fines for labor infractions by employers in El Salvador
06
Oct
Oct
Legislative Assembly reforms the Labor Code to increase fines for labor infractions by employers On October 4, 2022, the Legislative Assembly of El Salvador reformed Art. 627 of the Labor Code to increase the fines for labor infractions against books I, II, and III of the Labor Code and those infractions that do not have…
Anti-money Laundering Compliance, Blog, El Salvador, News
New technical rules for the AML prevention in El Salvador
05
Oct
Oct
The Standards Committee of the Central Reserve Bank has issued new Technical Rules for the Management of Money Laundering and Asset Laundering Risks, Financing of Terrorism and Financing of Weapons of Mass Destruction Proliferation (NRP-36). As approved by the Central Reserve Bank on September 23, 2022, the Rules will enter into effect on October 10,…
Blog, El Salvador, Labor & Employment, News
New law for the protection of breastfeeding is issued in El Salvador
28
Sep
Sep
On September 27, 2022, the Legislative Assembly of El Salvador issued the law, “Love Converted into Food for the Promotion, Protection and Support of Breastfeeding.” This law has labor implications for companies regarding the establishment of lactation rooms and the granting of paid breaks to recent mothers to breastfeed or collect their milk during working…
At BLP, Banking & Finance, Blog, El Salvador
BLP advises on the repurchase of bonds of the Republic of El Salvador
26
Sep
Sep
BLP acted as legal counsel to Deutsche Bank Securities Inc. as dealer manager, in respect of certain tender offers made by the Republic of El Salvador to repurchase in cash certain sovereign bonds due in 2023 and 2025, accordingly; for an aggregate of up to US$360 million in the first round, and up to $74 million in…
15
Sep
Sep
On September 14, 2022, the Legislative Assembly of El Salvador decreed paid leave for workers from the public and private sector for September 16, 2022. If an employee works on this date, the employer must pay a surcharge of 100% on his/her salary. BLP has ample experience advising national and international companies on labor matters…
Blog, El Salvador, Labor & Employment, News
Legislative changes to employers’ obligation to provide daycare services to their employees in El Salvador
19
Jul
Jul
On June 24, 2022, the “Growing Together for the Integral Protection of First Infancy, Childhood and Adolescence Law” was published in the Official Gazette, repealing the “Special Law for the Regulation and Installation of Daycare Rooms for Employees’ Children.” It is worth mentioning that the repealed law was issued on May 2018, but, after multiple…
11
Jul
Jul
BLP has advised Banca de Inversión Bancolombia S.A., Banco Agrícola, S.A., and other local and foreign banks on a syndicated loan for up to $348 million, to the AES group. AES is the primary power distributor in El Salvador, and among the group of companies in El Salvador that benefited from this syndicated loan are…
At BLP, Blog, Business Law, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua
BLP advises Barentz International on the acquisition of Divsa in Central America
29
Jun
Jun
BLP has advised its client, Barentz International, a global distributor of ingredients in the life sciences industry, on the acquisition of 100% of the shares of Distribuciones Industriales Variadas, S.A. (Divsa) in a significant transaction involving eight jurisdictions (Guatemala, El Salvador, Honduras, Costa Rica, the Dominican Republic, British Virgin Islands, Panama, and Mexico.) Divsa is…
At BLP, Blog, El Salvador
BLP advised IDB Invest on a $70 million subordinated loan to Banco Agrícola S.A. in El Salvador
23
Jun
Jun
BLP advised IDB Invest on all matters related to closing a $70 million unsecured subordinated loan to Banco Agrícola S.A. of El Salvador. Banco Agricola will use the loan proceeds to support its supplementary capital structure and for the origination of sub-loans to small and medium-sized enterprises in El Salvador, with an emphasis on Salvadoran…