Special Provisions to Facilitate the Use of Remainders from the Issuance of Agrarian Reform Bonds Authorized by the Special Law for Agrarian Reform Bond Issuance

The special provisions authorize the Salvadoran Institute of Agrarian Transformation (ISTA) to issue agrarian reform bonds up to 87.5 million colones equivalent to 10 million US dollars, intended to pay judicially ordered indemnifications pending to former owners of properties affected by the agrarian reform process. It establishes three series of bonds (A, B and C) with 6% annual interest and redemption terms of 20, 25 and 30 years respectively, subject to the provisions of the Special Law for Agrarian Reform Bond Issuance. The legal framework authorizes ISTA in collaboration with the Ministry of Finance to issue necessary instruments establishing amortization table, bond characteristics, term, maturity and payment method. The effective use of bonds must be carried out from October 2018, requiring ISTA to inform the Ministry of Finance about the effective use of bonds whether total or partial.