NetNews Usenet Archive 1992 #20/NN_1992_20.iso/spool/misc/activism/progress/6538

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From: [e-mail] (Rich Winkel)
Subject: El Salvador: PROCESO 529: NEWS BRIEFS
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/** reg.elsalvador: 168.0 **/
** Topic: Proceso 529: News Briefs **
** Written  8:58 am  Sep 14, 1992 by [e-mail] in cdp:reg.elsalvador **
From: [e-mail] (Centro de Informacion Documentacion y Apoyo a la Invest. - UCAJSC)
Subject: Proceso 529: News Briefs

PROCESO 529
September 9, 1992

NEWS BRIEFS:

EXTENSION:  On September 3, with the votes of ARENA, PDC,
Democratic Convergence and MAG, the Legislative Assembly passed the
first amendment to the Value-Added Tax by offering a 30-day
extension for those who must remit the tax, in order that they may
have time to register and fulfill all the Treasury's obligations.
The amendment also allows 90 days for taxpayers to continue to use
the same receipts, ledgers, registers and other tax-related
documents. According to legislative deputy Carlos Gonzalez, the
measure will give businesses time to become familiar with the VAT's
paperwork and fulfill their obligations without having to pay a
fine.

MEASURES:  On September 7, the Minister of Agriculture and
Livestock, Antonio Cabrales, reported that measures would soon be
taken to halt price increases for basic goods, which rose sharply
before and after the VAT took effect on the first of the month.
Cabrales mentioned that the issue caused concern at the latest
cabinet meeting, given increases of over 40% in the prices of
certain goods and services. The increases bear little relation to
the 10% decreed by the VAT, given that previous prices already
included a 5% stamp tax.

PRIVATIZATION:  The Central Reserve Bank (BCR) announced that, in
order to prevent possible abuses in the purchase of shares of the
newly privatized banks, the norms governing the direct sale of the
shares have been modified. Such abuses were denounced in the case
of the Development and Investment Bank where, according to
information collected by the Privatization Commission of the
Legislative Assembly, some persons had attempted to control more
than the 5% of the shares established by law. After the fraud was
uncovered, the BCR issued 123,203 more shares of the Bank,
representing 22.6% of total shares, with a unit value of 146.36
colones ($17.22). In reference to privatization, BCR president Jose
Roberto Orellana announced that shares of the Commercial and
Salvadoran Banks would be offered for sale in October, and the
first housing finance agencies would be up for sale by the end of
the year; next year the nation's remaining financial institutions
would be sold. The official also reported that the banking system
will earn a total of almost $100 million through sale of shares, of
which almost one-fourth will be fully paid for before the end of
1993.

CONSUMER LAW:  On September 3, the Legislative Assembly unanimously
ratified the Consumer Defense Law, which was originally passed on
June 19, but then returned by the president with 14 observations.
Nine of the observations were accepted and five were rejected by
the Assembly. Christian Democratic deputy Roberto Viera explained
that the law allows the Ministry of the Economy to set prices of
essential goods in the following cases: when the country is in a
national emergency; in cases of oligopolic and monopoly practices,
and when price-fixing is detected. The president's observations
concur with the first case, but he opposed the other two. Also,
according to the final version of the law ratified by the Assembly,
national credit agencies may not charge their clients penalty
interest fees on the total outstanding debt, as has been the
practice, but rather on the interest corresponding to the late
payment in question.

INAUGURATION:  On September 7, President Cristiani officially
inaugurated the National Academy of Public Security. The new
academy will be located in the former barracks of the Technical
Center for Police Instruction (CETIPOL), in Santa Tecla. During the
ceremony, the president expressed his confidence in the
capabilities of the new police force. "Our country needs a
streamlined and modern police force to consolidate democracy" and
in order for "the people to devote themselves with tranquility to
the job of reconstruction," said Cristiani. The new director, Jose
Mario Bolanos, stressed the efforts made in order to get the
Academy going; the school currently only enjoys a limited amount of
human and financial resources, most of which were provided by the
United States and Spain. In this regard, President Cristiani asked
the Legislative Assembly several days ago to create a special
budget of 22 million colones ($2.6 million) to cover the Academy's
operating costs.

THREATS:  On September 7, the self-styled Salvadoran Revolutionary
Front (FRS) sent press releases to a number of local media to
announce its formation. The FRS, which claims to be made up of
former FMLN combatants and government soldiers, announced it would
carry out sabotage against public transportation and the nation's
electrical system as a way to "stop the economic offensive launched
by the ARENA government against the poorest of the poor." The group
said it decided to take action "given the incapacity of the FMLN
leadership." In response to the threats, President Cristiani
speculated that the FRS could truly be made up of FMLN dissidents,
or perhaps the group was "something strictly planned, since FMLN
leaders have shown unhappiness with the [peace] accords." Defense
Minister Ponce denied that former army soldiers might be members of
the FRS, claiming they had had nothing in common with FMLN
combatants throughout the war. Joaquin Villalobos reacted by
declaring that the FRS was a psychological warfare ploy.


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