Publisher: IGM INVESTMENTS. Latin American Director: Margarita Fernández. Project Manager: Silvia Rios. Business Journalist: Karina Menesess. Acknowledgements: Banco Central de Reserva, Ministerio de Turismo. EL SALVADOR IGM IMVESTMENTS INDEPENDENT SUPPLEMENT FOR LOS ANGELES TIMES www.igminvestments.com Photography: Ministry of Tourism FINANCE p.2 Solid and Dynamic INDUSTRY p.6 Countless Opportunities TOURISM p.9 The Best waves of Central America ...where life is a private celebration Sanur I Ubud I Nusa Dua I Jimbaran Nanjing I Yangshuo BOOK NOW I p.8 Heading towards a million inhabitants (in addition Accommodation and food service an increase of US $ 881.9 million to 1.5 million Salvadorans living activities (5.29%); Water supply, compared to the month of July positive change abroad), which makes it one of the sewerage and waste management 2019. This is mainly due to the most densely populated countries (4.69%); Exploitation of mines placement of funds for bonds by The Republic of El Salvador is in the world. and quarries (4.36%); Supply the Government of El Salvador . located in Central America, it On June 1th of 2019, Nayib Bukele of electricity, gas, steam and On the other hand, the Liquidity borders to the north and east took office as the new president of air conditioning (4.33%); Reserve, formed as demand with Honduras, to the west with El Salvador, prioritizing his efforts Administrative and support deposits in the Central Bank, Guatemala and to the south with in the security and economy services activities (3.64%); increased US $ 13.6 million with the Pacific Ocean. To the east of the country. Bukele also has Real estate activities (3.42%). respect to the previous months. it has a maritime border with managed to avoid conflicts with Other service activities (2.59%); As for the Foreign Direct Nicaragua in the Gulf of Fonseca, the president of the USA, Donald where it has 9 islands. Trump, in the field of migration. In El Salvador is situated in the fact, he has preferred to articulate pacific Ring of Fire, and its messages that attract foreign volcanic territory is very active. In capitals, especially Americans. fact, 90% of its soil is composed it is important to mention that of volcanic materials. El Salvador has significant As for its climate, it has two competitive advantages for seasons: the dry season the location of companies, (November-April) and the highlighting the response speed, rainy season (May-October). In and geographical proximity, which addition, the country is affected by is complemented by free trade hurricane season in the Caribbean agreements that give access to (June-November). an important customer market. With a territorial extension of The free trade agreements that 21 041 km², the country has 6.4 the country has signed with several countries allow access to a FACT FILE potential market of 1,200 million customers worldwide. Official name: Republic of It is also relevant the fact that El Salvador the country has one of the most competitive labor costs in Central Capital: San Salvador America, including labor benefits, and the high quality of the workforce that is distinguished in President: Nayib Bbukele Manufacturing industries (1.94%); the region. Investment (FDI), according to Trade, repair of motor vehicles and Regarding the economic the BCR, during the first quarter Population: 6,420,746 motorcycles (1.89%); Information indicators, the quarterly Gross of 2019, the net flow reached an and communications (1.59%); %); Domestic Product in chained amount of US $ 177.3 million. Transport and storage (1.43%); Surface: 21,041 km² volume indices in its seasonally These resources were mostly Agriculture, livestock, forestry adjusted series determined in the associated with the services and fishing (1.19%); Artistic, second quarter of 2019 an increase sector, including the financial Official language: Spanish entertainment and recreational of 1.98%. sector (US $ 91.5 million) for activities (0.15%), according to The behavior of this indicator operations of companies holding data from the Central Reserve Currency: US Dollar is determined by the favorable shares; the electricity sector with Bank of El Salvador (BCR for its performance of the following US $ 75.5 million, thanks to the acronym in spanish). Annual Growth 2018: 2.5% economic activities: Construction new renewable energy projects, The Net International Reserves at (7.73%); Financial and and air transport services and the end of August 2019 reached logistics operators with US $ 59.1 Unemployment rate: 6.40% insurance activities (5.46%); the level of US $ 4,575.6 million, million. “This supplement is printed and distributed in select areas by the LOS ANGELES TIMES. It does not involve the editorial staff of the LOS ANGELES TIMES” 2 FINANCE Solid and the productive sectors of coffee, Government of President Bukele, cane and some other specialized but because it is a tangible, Dynamic products that the Government evident and forceful reality. In decides to support. Currently,, just a few months the country’s The Latin American countries this is under review because the conditions are changing rapidly. To with the lowest inflation in August Government aspires to be much the Salvadoran brothers residing 2019 (compared to the same broader in coverage, reaching in the US I tell you, every time period last year) are El Salvador other non-traditional sectors. It one of them comes to El Salvador (-0.5%), Ecuador (0.3%) and also would like to include other with intentions to invest, they Panama (1.1%), These economies crops that are not limited to first go through adequate training have in common that their official coffee. where they have an overview of currency is the dollar. According to Durán, Bandesal the situation. Furthermore we El Salvador has a solid financial wants to develop the following will make sure that they have the Juan Pablo Durán Escobar three strategic areas: essential data and information, system, comprising 13 private President banks. The role of the bank as Bandesal First, ensure that those who do and we will provide all the an intermediary is decisive in the not have conditions to manage a necessary guidance, so that when economic dynamics because it “Of the good things that have loan due to the lack of guarantees investing, they do it safely”, captures money from the public, happened in El Salvador is that the can be supported through the affirms Durán. which are subsequently used as financial system is very robust, Salvadoran Guarantee Fund. The Bandesal’s vision is to be a funds to give loans to both, people solid and quite conservative, experience of private banking relevant strategic partner for and businesses. allowing to overcome difficult shows that half of the loans are the national and international The Salvadoran banking system times without negative impacts denied because they do not have community for the development is very solid and dynamic and it at the financial level. We have a enough of El Salvador’s economy. In this grows even twice as much as the very strong commercial bank, a warranty. In this sense, Bandesal sense, the institution has a high country’s economy. state bank in good condition, a would contribute significantly if it interest in helping successful As of June 2019, the amount of cooperative bank that emerges could help solve this situation. Salvadorans residing in the US deposits were $ 12,704 million very strongly and Bandesal, Second, Bandesal does not just and who already have very good and in loans $ 12,744 million, more the only development bank in than the same period in 2018, the country, an entity totally “On January 1, 2001, the Monetary Integration both, loans and deposits maintain linked to the great policies of a stable trend of average growth the Presidency of the Republic”, Law entered into force, incorporating the dollar near 5% since January of this year, indicates Juan Pablo Durán, as El Salvador’s currency, relegating gradually indicating a favorable growth for President of Bandesal. the sector. Bandesal currently supports 63 the Colón” The factors that have contributed institutions. It fulfills the role to this stage are: the rebound of a first and second-tier bank, want to allocate resources, it also resources, so upon their return in international trade and allocating exclusive resources for wants to make sure that they they can feel that the Government the recovery of investment in priority productive areas such as, are well used and successful. attends and accompanies them advanced economies. small and medium enterprises. Its To achieve this, it has created to be successful. The results of the banking objective is quite clear, however, it the Training and Business In this respect, it is also important system as of August 31, 2019 are also support the big companies. Development Management. to mention that as a result of as follow: equity reached US $ Bandesal, among other services, Third, the bank’s funds will the migration from this country, 2,212.2 million, assets totaled US specializes in the management of multiply. In the five-year period, remittances have taken a leading $ 18,647.5 million $ 1196.8 million trusts in the country, currently it it can grow with more than USD $ role in the development of this (6.9%) more if compared to the handles 11, of which five are public 1.3 billion. Bandesal is a bank with sector. balance of August 2018, and the and six are private. triple AAA rating, which can easily According to BNR data, family gross loans totaled US $ 12,881.2 In the agricultural sector, Bandesal raise funds at good rates. remittances received by El millions. operates as a fiduciary with “We are living in times of change Salvador as of September 2019 In August 2019, the liquidity money that the State channels in El Salvador and I do not say it amounted to US $ 4,159.3 million, indicator totaled 33.92%.