NEWS

San Salvador, August 14 of 2015

With 74 votes in favor, the Legislative Assembly approved the creation of a Financial Inclusion Law.

This Law aims at providing financial inclusion, and promoting competition in the financial service sector, as well as reducing costs for users and clients of the system.

Official data establishes that only 35% of the people from El Salvador has the possibility to access the formal financial system. With this Law this percentage is expected to grow, up to a 60% since it simplifies the requirements needed in order to open a savings account in a bank, in a cooperative bank, and in a saving and credit society.

On the other hand, according to Oscar Cabrera, President of the Central Reserves Bank (BCR), with this new law operations made by cellphone or similar applications may be regulated, since it introduces an international tendency called “electronic wallet” or “electronic keychain”.

Also, the law establishes the requirements, societies that are interested in providing electronic money loans services, must comply with in order to work in this innovative business.

Other particularity of the law is the amount of the electronic money that can be provided, must be backed up by a non-refundable deposit in the Central Bank of 100%, created in advance by the loaner of this service, as a guarantee for those cases that may arise, that imply the non-compliance and no payment of the financial obligations acquired by the titleholder of the electronic instrument.