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Changes in normative body to improve the business climate in El Salvador

The Legislative Assembly recently approved two laws that will allow that people make their formalities without bureaucratic problems in the government institutions, this with the purpose of making the formalities more efficient and that the procedures are eliminated, but overall the bureaucracy.

On one side, the Law for the Elimination of Bureaucratic Barriers will be in charge of controlling the formalities in the public administration and will give life to the Elimination of Bureaucratic Barriers Tribunal (TEBB), which will be empowered to start processes of sanctions against officials that stops or hinders the formalities made by the citizens in any institution of the State. The TEBB will have five days for the acceptance of the complaints received by the citizens and includes sanctions to those who obstruct the formalities with fines of between 5 and 20 monthly minimum wages of the industrial sector against the person who commits the infringement.

On the other side, the Law of Regulatory Improvement that takes part of the requirements after the signing of the Millennium Challenge Agreement (MCC) with the United States, will make possible the reduction of the formalities and gives life to the Regulatory Improvement Organism (OMR) that currently exists by executive decree. This entity will analyze the reforms that considers necessary, with the purpose of reducing the regulatory excesses in the formalities of all the State entities.

According to the Regulatory Improvement Organism, “the commitment agreed by the Government of El Salvador is to reduce in a 20% (USD 81.4 million) the administrative burdens generated by the formalities of the Executive Organ by the end of 2020 and that way achieve a favorable impact in the investment climate of the country”.

With the approval of these normative bodies is seeking to improve the business climate in El Salvador, facilitating the investments with better regulatory processes, with which is expected the establishment of new companies, attraction of new foreign investment and thereby the generation of new employments.

David Claros Flores
García & Bodán
El Salvador